Are Gen Z Losing Interest In Driving?
Gen Z, the generation most affected by school closures and job losses due to COVID, is facing a tough situation. They don't have the same earning potential or opportunities for advancement as past generations.
Cars are not as popular anymore. In Europe, there were 10.4% less passenger car registrations in 2022, which is 12.8 million units. Compared to 2019, the decline was even worse with 29% fewer new vehicle registrations, which is equivalent to 4.5 million less.
New cars are not arriving at dealerships on time due to a lack of semiconductors, inflation, the war in Ukraine, and an energy crisis. This has contributed to a downturn in car sales. However, it's also possible that our love for cars has changed and they are no longer seen as a symbol of status.
People have liked cars differently for a long time. Baby Boomers were born between 1946 and 1964. They bought a lot of cars and were good for car companies.
Generation X is the group between the Boomers and Millennials. They were born from 1965 to 1980 and are the smallest generation with only about 65 million people worldwide. They are outnumbered by the 75 million Baby Boomers and 83 million Millennials.
Gen X families had both parents working outside the home. This meant that many households needed two cars. Unlike Boomers, men were not the only earners. More women were working than ever before.
The Millennials' arrival saw predictions about the end of car ownership and driving. They were born between 1981 and 1996 and entered the workforce during the 2007-09 recession. This generation preferred sharing over owning cars.
Millennials prefer ride-hailing services and ride sharing. This decision is driven by the expenses of owning a car. Desire for technology and on-demand services also plays a role. New options are evolving to meet these preferences.
More People Prefer Public Transportation
New research from the US shows that Millennials are open to using different ways of getting around, but still drive - just not as much as older generations.
Millennials drive 8% less than Generation X and 9% less than Baby Boomers, says Transportation Research.
People born after 1996 are Generation Z. They grew up with the Internet and smartphones. They're a tough group for digital marketers to figure out. Generation Z is unpredictable when it comes to buying things.
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Car manufacturers are worried about young people who are good with technology. These young people aren't interested in driving. Instead, they prefer sustainable options such as biking and taking the bus.
The EU's most diverse generation is also the best educated, but they're vulnerable in housing and labor markets.
Gen Z is facing a high risk of poverty and struggling with intergenerational earning mobility. They are also being severely impacted by Covid-19 with school closures and job loss. This may result in them avoiding driving due to health concerns, environmental factors, and cost.
A German study found that there were changes in everyday bicycle and car use from 2002 to 2017. These changes were not just because of different generations.
: Trend Towards Car Sharing
New study shows factors like location, education, income, and commuting distance determine mode of transportation. Cars and bicycles both likely.
McKinsey's report, The Future of Mobility, says that transportation is about to change a lot. One of the big changes will be that fewer people will buy cars.
In the next 10 years, there will be a 15% decrease in car usage. This is because more countries and cities are creating rules that promote being eco-friendly. They're doing things like making fewer parking spaces and limiting the amount of private cars on the road. This is expected to cause a big drop in car usage, especially in European and American cities.
Many young people are being hired for low-paying jobs that offer little job security. As a result, Gen Z may have fewer cars. However, this trend won't be driven solely by one generation.
The car will still be on top in the next 10 years, but it will have rivals. Other transportation options will challenge it. It's possible that a lot of people, beyond Gen Z, will think twice about owning a car in the future.