Mathilde Carlier
Research Expert covering transportation and logistics
Amid various challenges the automotive industry faces, automakers must contend with and market for a new generation of consumers. Often hailed as the green generation, Generation Z, comprising people born from the late 1990s to 2012, is slowly becoming of driving age. How does this generation’s environmental awareness affect their consumer behavior in the automotive market? Various factors, including country of residence and the current economic conjecture, play a part. However, despite these considerations, Gen Z might not be so different from its older counterparts.
This reliance on cars for commuting differs by country. In places such as Brazil, under half of Zoomers used their own or a household car for that purpose, which was eight percentage points lower than Baby Boomers, the second least likely generation to use a car for that purpose. In Germany, which benefits from a more developed public transit network, just under half of Gen Zers commuted with a private car. However, the share of German Zoomers using public transportation was higher than in the two other countries cited. These geospatial factors create a diverse picture of the Gen Z automotive consumer.
The global Gen Z reported planning to purchase an electric vehicle in the future among the mobility actions Zoomers had taken or intended to take to reduce their environmental impact. However, electric vehicle prices could act as a disincentive for Zoomers to invest in this propulsion type. Cars tend to be a necessity purchase with luxury car shoppers in the U.S., for example, amounting to under 15 percent of Gen Zers, which suggests a vehicle’s price tag matters to consumers. While EV prices have started to decrease in 2023, the impact of this EV price war on Gen Z automotive purchases remains to be seen. Parallel to these challenges, however, U.S. Zoomers remain interested in purchasing a car, and their preferences are not too far off those of other generations, particularly Millennials.
Is Gen Z truly less reliant on cars?
During Statista’s 2023 Consumer Insights survey on sustainable consumption, Generation Z in the United States reported some willingness to spend more on sustainable products in selected categories, particularly in food and drinks, and beauty and personal care. However, this was the same as other generations, except for Baby Boomers. Zoomers were also the most likely to have used public transport, walked, biked, or carpooled in the previous 12 months to support environmental sustainability in the U.S., a share which dropped to under a third of Millennials, Gen Xers, and Baby Boomers. However, U.S. Zoomers still relied heavily on private cars for their daily commute to work, school, or university, which suggests the United States’ mass motorization is still engrained in the younger generations, as longer distances increase the need for private transportation.This reliance on cars for commuting differs by country. In places such as Brazil, under half of Zoomers used their own or a household car for that purpose, which was eight percentage points lower than Baby Boomers, the second least likely generation to use a car for that purpose. In Germany, which benefits from a more developed public transit network, just under half of Gen Zers commuted with a private car. However, the share of German Zoomers using public transportation was higher than in the two other countries cited. These geospatial factors create a diverse picture of the Gen Z automotive consumer.
Barriers to sustainable car purchases
Some common ground exists between Gen Zers across the globe. For instance, Zoomers from 72 countries reported costs were the main barrier to being more sustainable in 2023, and around 51 percent of the global Generation Z valued affordability over sustainability regarding product choice in 2022. Much like other generations, Gen Z in the United States mostly did not intend to splurge on vehicles, which showcases the impact of the increased cost of living on this generation’s purchasing intentions.The global Gen Z reported planning to purchase an electric vehicle in the future among the mobility actions Zoomers had taken or intended to take to reduce their environmental impact. However, electric vehicle prices could act as a disincentive for Zoomers to invest in this propulsion type. Cars tend to be a necessity purchase with luxury car shoppers in the U.S., for example, amounting to under 15 percent of Gen Zers, which suggests a vehicle’s price tag matters to consumers. While EV prices have started to decrease in 2023, the impact of this EV price war on Gen Z automotive purchases remains to be seen. Parallel to these challenges, however, U.S. Zoomers remain interested in purchasing a car, and their preferences are not too far off those of other generations, particularly Millennials.
