For a decade or more, 'Millennials' - those people born roughly between 1980 and 2000 - have long been touted as the death-knell for the car industry. No interest in cars, apparently. Far more interested in phones and other digital devices. Not getting drivers' licences. Well, apparently Millennials might be more into their wheels than was previously thought...
Millennials looking to buy their first cars
A new survey from accountancy and market analysis firm EY has found that Millennials might, cavalry-like, ride to the car industry's rescue in 2021. Some 31 per cent of people surveyed who do not currently own a car, intend to buy one next year. The Millennial age group, those aged between 24 and 39, will apparently make up as much as 45 per cent of that first-time car owners' group.
The results of the survey, which covered more than 3,000 respondents living in nine countries, found that the effects of the COVID pandemic and lockdowns were contributing to these car-buying plans. 78 per cent said that they would be using their car more in a post-pandemic world, and Millennials formed a majority of that 78 per cent.
Not going for EVs nor hybrids
Interestingly, this new cohort of car buyers isn't looking to new technology. 71 per cent said that they would buy a petrol or diesel model, with only six per cent looking for an electric car, and 23 per cent going for a hybrid. That's likely to be a cost-sensitivity issue; first-time car buyers are unlikely to be able to afford the price premiums asked for EVs or hybrids.
That comes as public transport is taking major hits in usage thanks to the pandemic - there's been a 69 per cent reduction in public transport use for work overall across all nine countries surveyed. Furthermore, there has been a 61 per cent fall in usage for leisure and entertainment pursuits, and a 53 per cent decline for household and social travel. It's likely that those figures will start to recover as vaccines are rolled out, however.
Car ownership has growing appeal
Commenting on the research insights, Yvonne Kiely, Head of EY-Seren, Ireland said: "The COVID-19 pandemic is reshaping all aspects of life and our approach to transport both as individuals and businesses is no exception. The results of our international mobility research point to an unexpected surge of interest among millennials in car ownership, and a surprising preference for non-electric vehicles. A key takeaway for the automotive industry is that car ownership appears to have growing appeal in 2021 and a new market is emerging that is keen to make purchasing decisions imminently as the global pandemic continues. This growing appeal needs to be matched by building further awareness around electric vehicles.
"With more people buying cars and car usage expected to increase, this leaves policymakers internationally with challenging issues to consider - including the accommodation of more vehicles on our roads, potential reduction in use of public transport, facilitating and incentivising the use of electric vehicles, and of course the return to public transport usage at previous levels after the pandemic. To counteract any citizen reluctance to return to public transport, we need to truly understand their concerns; are they around reliability, health and safety or do they seek more independence to travel outside of established public transport routes? These must be addressed appropriately to ensure the public transport infrastructure that is key to our sustainability as a nation is embraced again. This would encompass everything from education and reassurance to widespread communications and process changes across all public infrastructure platforms and beyond."