As Gen Z and Millennials regain financial confidence, a growing number within this group are inclined to buy a new car. Looking ahead, as electric cars gain popularity, sustainable vehicles will become the norm.Â
47% of Gen Z and 48% of Younger Millennial car buyers consider price to be an important factor when buying a car, whereas 54% of Gen Z and 51% of Younger Millennials consider quality to be an important factor. This shows that convincing young buyers of quality is likely to make the cut.
Financial confidence among Gen Z and Millennials is recovering. Although Gen Z shows higher financial confidence, a significant portion may lack the disposable income to purchase a new car. Conversely, even though Millennials demonstrate lower confidence levels, they remain a valuable consumer segment due to more stable employment, higher potential savings and lifestyle and working pattern shifts that require a car purchase.
As Gen Z and Millennials recover from a financially challenging period, brands have a chance to forge positive connections with them to boost sales. Using experiential marketing to create excitement and blending innovation and aspiration will hit the mark, even with car enthusiasts.
This report examines the attitudes and behaviours of Generation Z and Millennials towards cars. Generation Z includes individuals aged 18 to 27, while Millennials consist of those aged 28 to 43. The study was carried out among a sample of 1,972 consumers aged 18+ to emphasise the differences between various generations where applicable.
Venkatesh writes reports covering both the automotive and technology industries. During his studies, he gained practical experience in automotive market research, working at Volkswagen AG in Germany and India.
Millennials are a crucial demographic for the car market. But as Gen Z grows in importance, it is vital to use social media to articulate authenticity and trust.
Venkatesh Modi
Automotive Research Analyst, Germany
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