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Marketing Cars to Millennials and Gen X - US - June 2015

Marketing Cars to Millennials and Gen X - US - June 2015

"Millennials are a driving force in the automotive market. Despite a perception that Millennials don’t buy cars, there are plenty of Millennials out there – and plenty of them either own cars or are interested in owning cars. Millennials are urban, cash-strapped, and tech-savvy; and they’re also at the start of their careers and beginning to start families."

This report covers the following areas:

Millennials are cash-strapped
Millennials are more urban than Gen Xers


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Figure 1: Vehicle ownership, by demographics, March 2015
Figure 2: Millennial and Gen X by household income, March 2015
Figure 3: Millennials and Gen Xers, by area, March 2015
The opportunities
Figure 4: Purchase drivers for Millennials, March 2015
Figure 5: Research tools used by Millennials and Gen Xers, March 2015
What it means
THE MARKET
What you need to know
Millennials do have access to cars
Urbanization, debt, and lower household incomes are all challenges facing the market
Millennials are a difficult group to market cars to
Market factors
Millennials own cars after all
Income impacts potential for car buying
Urbanization drives Millennial and Gen X buying choices
Smartphones and tablets impact the automotive market
Millennials search for tech, value, and practicality
KEY PLAYERS
What you need to know
Ford, Honda, Toyota, BMW, Audi high on Millennial shopping lists
Marketing to Millennials can be tricky
Small, practical products pave the way forward
What’s working?
Ford, Toyota, Audi, BMW getting Millennials’ attention
Figure 6: Brands under future consideration – Any brand, March 2015
What’s struggling?
Past reliability performance, poor marketing can hamstring a brand
What’s next?
New products aimed at Millennials (and Gen X) show the way forward
THE CONSUMER
What you need to know
Millennials are in the city, Gen X in the suburbs
Millennials use lots of social media, but Gen X is just as Internet savvy
Gen X worried about price, Millennials about how “cool” a vehicle is
Who is today’s Millennial and Gen Xer?
Millennials are urban, tech-friendly, and many are just starting their careers
Figure 7: Millennial and Gen X BY household income, March 2015
Gen Xers higher earners, may bode well for car market
Millennials are tech-savvy shoppers
Millennials turn to the internet to research their purchases
Figure 8: Millennial and Gen X Research tools, March 2015
Neither Millennials nor Gen X have abandoned dealerships
Figure 9: Future vehicle-purchasing plans, March 2015
Purchase drivers
Price and safety trump tech, but it still matters
Figure 10: Purchase factors, March 2015
Millennials prioritize tech over green
Amount willing to pay for next vehicle
Millennials are looking for affordable vehicles, Gen Xers will spend more
Figure 11: Amount willing to pay for next vehicle purchase, March 2015
Millennials searching for practical vehicles that represent value
Reasons for purchasing
Millennials, Gen Xers have different reasons for vehicle purchases
Figure 12: Reasons for purchasing, March 2015
APPENDIX
Data sources and abbreviations
Consumer survey data
Abbreviations and terms
US Research Methodology
Consumer research
Social Media Research
Trade research
Statistical Forecasting

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