It has become fashionable to portray an emerging generation of tech savvy youngsters as uninterested in owning cars. These new consumers are seen as being more interested in gadgets, social media, ‘experiences’ and renting things that previous generations preferred to own.
However, a survey report from Deloitte suggests that so-called ‘Gen Y’ consumers are showing a clear interest in vehicle ownership. Moreover, they have specific ideas of what they want in a car, according to Craig Giffi, vice chairman, Deloitte LLP, and automotive practice leader.
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Citing data from a Deloitte report on global mobility, Giffi said that while young consumers view car ownership as less important for mobility than previous generations, they are, nonetheless, excited about affordable, technology-enabled vehicles – especially hybrid electric cars.
Deloitte’s soon-to-be-released report is based on survey responses from more than 23,000 consumers across 19 countries, including more than 2,000 United States consumers – 677 of whom were from the Gen Y demographic (born between 1977 and 1994).
The results indicate that while America’s romance with the car does not extend to Gen Y, the nearly 80 million Gen Y consumers in the United States are not giving up on car ownership.
“Well over half (61 percent) of Gen Y consumers in the Deloitte report expect to buy or lease a car within the next three years,” says Giffi, who adds that “almost a quarter (23 percent) expect to purchase or lease in the next 12 months – and a mere 8 percent do not expect to ever purchase or lease a vehicle.”
It also said that only 29 percent of Gen Y consumers would be willing to give up their personal cars, even as non-traditional mobility options like car-sharing and car-pooling services proliferate.
So, while attitudes may well be changing among young people, this report from Deloitte suggests that a degree of perspective is needed on just how quickly they are changing and what that really means in the marketplace.
