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Gen Y May Change the Face of the Auto Industry
January 24, 2012 2:08 am
Deloitte LLP's annual survey of Gen Y consumers shows that their strong affinity for hybrid vehicles could make it the generation that leads us away from traditional gasoline-powered vehicles, according to Craig Giffi, vice chairman and automotive practice leader at Deloitte.
A strong majority (59 percent) of Gen Y respondents surveyed prefer an "electrified vehicle" over any other type of car or truck. Moreover, Gen Y consumers heavily favor hybrid gasoline-electric vehicles (57 percent) over pure battery electric vehicles (2 percent) or vehicles with a traditional gasoline-only powertrain (37 percent).
The annual survey, now in its fourth year, canvassed 1,500 Gen Y, Gen X and baby boomer consumers in the United States, as well as 250 Gen Y consumers in China and 300 Gen Y consumers in Western Europe. Deloitte conducted the survey in September and October 2011. It defines Gen Y consumers as those ranging in age from 19 to 31.
According to Giffi, Gen Y consumers may be the game changers in the United States because, at nearly 80 million strong, they are one of the biggest domestic automobile buying market segments and the largest consumer segment since the baby boomers. Giffi indicates that, according to projections, one out of four new automobiles sold this year in the United States, and 40 percent of vehicles sold in the next 10 years, should be bought by a Gen Y consumer.
From the study, Giffi found that Gen Y consumers are drawn to hybrids for several reasons. Most notably, fuel efficiency: 89 percent of Gen Y consumers are considering buying a vehicle that gets better mileage, especially true when gasoline prices rise above $2.75 per gallon - the median price Gen Y consumers see as 'fair.' Further, 49 percent of Gen Y consumers are willing to pay an additional $300 for each mile-per-gallon of improvement they can get out of a hybrid - only $50 less than the $350 mile-per-gallon premium that Deloitte estimates a hybrid vehicle currently costs compared to an internal-combustion engine vehicle.
Gen Y consumers also prefer automobiles that are an extension of their social-media and digital lifestyles. In-dash technology is the most important part of a vehicle's interior for a majority (59 percent) of Gen Y respondents, with almost three-quarters (73 percent) seeking touchscreen interfaces. Gen Y consumers also rank smartphone applications as highly desirable in a new automobile (72 percent).
However, Gen Y consumers also realize that this increased connectivity can create safety issues.
Solution: a vehicle that may compensate for the distractions that result from increased connectivity with ramped-up safety features.
A strong majority (59 percent) of Gen Y respondents surveyed prefer an "electrified vehicle" over any other type of car or truck. Moreover, Gen Y consumers heavily favor hybrid gasoline-electric vehicles (57 percent) over pure battery electric vehicles (2 percent) or vehicles with a traditional gasoline-only powertrain (37 percent).
The annual survey, now in its fourth year, canvassed 1,500 Gen Y, Gen X and baby boomer consumers in the United States, as well as 250 Gen Y consumers in China and 300 Gen Y consumers in Western Europe. Deloitte conducted the survey in September and October 2011. It defines Gen Y consumers as those ranging in age from 19 to 31.
According to Giffi, Gen Y consumers may be the game changers in the United States because, at nearly 80 million strong, they are one of the biggest domestic automobile buying market segments and the largest consumer segment since the baby boomers. Giffi indicates that, according to projections, one out of four new automobiles sold this year in the United States, and 40 percent of vehicles sold in the next 10 years, should be bought by a Gen Y consumer.
From the study, Giffi found that Gen Y consumers are drawn to hybrids for several reasons. Most notably, fuel efficiency: 89 percent of Gen Y consumers are considering buying a vehicle that gets better mileage, especially true when gasoline prices rise above $2.75 per gallon - the median price Gen Y consumers see as 'fair.' Further, 49 percent of Gen Y consumers are willing to pay an additional $300 for each mile-per-gallon of improvement they can get out of a hybrid - only $50 less than the $350 mile-per-gallon premium that Deloitte estimates a hybrid vehicle currently costs compared to an internal-combustion engine vehicle.
Gen Y consumers also prefer automobiles that are an extension of their social-media and digital lifestyles. In-dash technology is the most important part of a vehicle's interior for a majority (59 percent) of Gen Y respondents, with almost three-quarters (73 percent) seeking touchscreen interfaces. Gen Y consumers also rank smartphone applications as highly desirable in a new automobile (72 percent).
However, Gen Y consumers also realize that this increased connectivity can create safety issues.
Solution: a vehicle that may compensate for the distractions that result from increased connectivity with ramped-up safety features.
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