Millennials and Auto Trends Report

Will Millennials Drive the Automotive Industry Forward?

Duff & Phelps surveyed 2,150 millennials to reveal if they will buy fewer cars than prior generations.

Given that 2.4 billion people were born between 1980 and 1996, according to Bloombergit’s a question that’s likely keeping some auto industry executives up at night–and there’s some anecdotal evidence behind it. Millennials prefer public transportation, ride-hailing, biking/scootering and even walking to driving their own cars–at least that’s the conventional wisdom.

However, we wanted to go further than conventional wisdom. In a survey of 2,150 millennials from around the globe, we obtained real numbers for what millennials, a generation that currently makes up nearly one-third of the world’s population, will do when it comes to buying automobiles in the years ahead.

Will Millennials Buy or Lease Vehicles Over the Next 10 years?
(Hover over colors for regional level data)

 

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The survey’s results indicate that common assumptions about low car ownership should be tossed out along with tired millennial stereotypes like poor work ethic, a sense of entitlement and bad attitudes.

Stereotypes aside, the results were surprising given that a higher percentage of millennials live in cities1 (with access to myriad public transportation options) relative to other generations, and millennials tend to be more environmentally conscious.2 However, it’s clear that millennials actually do value car ownership, and a high percentage expect to make another car purchase in the next five years. This is good news for automotive companies currently facing headwinds for the first time this decade.

Our survey was performed online with the goal of obtaining responses from men and women between the ages of 23 and 38 (born between the years 1980 and 1996) from some of the largest automotive markets around the world. The survey examines the responses on a global level as well as a regional level grouped as follows: the U.S. and Canada; Latin America, including Mexico, Brazil and Argentina; Europe, including Germany, UK, France and Italy; and Asia, including China (other than Hong Kong), Hong Kong, Japan, India and Singapore. Charts, data and findings in this report are based on the global survey responses unless otherwise indicated.

In the following report, we present our key findings regarding car ownership, interest in electric and hybrid electric vehicles, and the factors driving these trends. We provide supporting charts, data and the scope of the survey in the Appendix section at the end of this report.

 

Sources
1 “Millennials and Rapid Urbanization,” Urban Getaway, accessed September 25, 2019, https://www.urbangateway.org/news/millennials-and-rapid-urbanization.
2 Jennifer Robinson, “Millennials Worry About the Environment – Should Your Company?,” Gallup, accessed September 25, 2019, https://www.gallup.com/workplace/257786/millennials-worry-environment-company.aspx.

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Articles

Key Findings
Millennials Value Car Ownership – Will the Trend Continue?
75% of the respondents to our global survey currently own or lease a car.
Key Findings
Key Findings
Millennial City Dwellers Will Continue to Own/Lease Cars
According to our survey, 88% of global millennials living in cities who have a car expect to purchase or lease another one in the next five years.
Key Findings
Key Findings
Having a Car is a Necessity
Globally, 61% strongly agree and 24% somewhat agree, meaning 85% of respondents believe a car is a necessity on some level.
Key Findings
Key Findings
Will Millennials Replace Their Old Car with a New One?
When millennials decide to sell their car or terminate their lease, 94% expect to replace it.
Key Findings
Key Findings
Millennial Considerations in the Car-Buying Process
When millennials look for a new car, price, fuel efficiency and safety are top of mind, followed by style/look, size, brand reputation, technology...
Key Findings
Key Findings
Market Share of Hybrid/Electric Vehicles (EVs) Poised to Increase
30% of respondents said a hybrid electric powertrain is most appealing, and 6% preferred an all electric (EV).
Key Findings
Key Findings
Factors Driving Millennial Car Ownership
As the millennial generation ages, they are beginning to start families, which can lead them to make the same parenting decisions...
Key Findings
Key Findings
How Transportation Options Stack Up For Millennials
Globally, millennials drive their own car most frequently, without any other option close behind.
Key Findings
Key Findings
Millennials Prefer Owning/Leasing a Car Over Ride-Hailing Services
Globally, 75% of millennials chose owning/leasing a car over using ride-hailing service, if they would cost...
Key Findings
Conclusion
Where is the Automotive Market Heading?
Our global survey provides clear evidence that a high percentage of millennials currently own or lease a car and expect to purchase another one in the near future.
Conclusion
Survey Scope
Survey Scope
Our survey was performed online with the goal of obtaining responses from men and women between the ages of 23 and 38 from some of the largest automotive markets around the world.
Survey Scope

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