Debunking the Myth that Millennials Don’t Want Cars
Millennials aren’t interested in driving or owning cars. It’s the conventional wisdom that’s become rallying cry for environmentalists and urban planners, death knell for the carmakers, espoused in a new article every week. Boomers and Gen-X’ers defined themselves with their automobiles; Millennials reject them in favour of a sharing and a smartphone. But is it so black-and-white? Or is the truth less about stop-or-go, and more about how you take the corners?
Millennials car behaviour is different to previous generations. They’re less likely to have a license. They take fewer, and shorter, trips. They’re more likely to use alternative transport and car sales have dropped. But is this behaviour really an indicator that Millennials have fallen out of love with cars, or is something bigger at play?
We’re told three factors are at work: the rise of the sharing economy, a shift to smartphone centricity and a generation disadvantaged by a global recession. Despite these much-hyped narratives, our own research with experts and Millennials themselves, suggest reports of the car’s demise may be grossly exaggerated.
The Sharing Myth
PR spin claims that the sharing economy allows users to get what they want, on demand, without the burden of ownership. Scott Griffith, CEO of Zipcar (unsurprisingly) believes Millennials are indebted to the model. “One trend is abundantly clear: Millennials welcome the collaborative consumption movement with open arms.” It’s easy to understand the buzz when auto-execs like Sheryl Connelly, Head of Global Consumer Trends at Ford, proclaims, “Young people prize access over ownership. I don’t think car-buying for Millennials will ever be what it was for Boomers.”
The Millennials we spoke with agreed that there are cost benefits to car sharing. They were, however, quick to raise concerns about such services being dirty, inconvenient and impersonal (it seems left over Big Mac wrappers are not a Millennial aspiration!). Bike sharing — dressed up as part of a progressive vision for mobility — fared even worse, with everything from safety to weather protection and the embarrassment of being seen using one being barriers.
When it comes to digital media like Spotify and Netflix, Millennials clearly see the benefits of ‘access-not-ownership’ models. But they’re under no illusion that mobility plays by different rules: make no mistake, Millennials prefer the comfort and convenience of their own wheels.
Smartphones Don’t Replace Supercars
The smartphone has been hailed as the focus of attention for Millennials, conqueror of the car as most visible status symbol and curtailer of journeys.
Jim Lentz, CEO of Toyota USA agreed: “Many young people care more about buying the latest smartphone or gaming console than getting their driver’s license.” Mark Norman, President of Zipcar was bolder: “Cars used to be what people aspired to own. Now it’s the smartphone.” On the subject of reduced journeys, Ford’s Connelly concluded “You no longer need to feel connected to your friends with a car when you have this technology that’s so ubiquitous, it transcends time and space”. Researchers at UMRTI in Michigan had a similar view.
In contrast, our Millennials still saw the car as a symbol of independence and of style and status: most have their sights firmly set on seductive and well-established luxury brands and sports cars. Given they grew up with celebrity culture and are reportedly more materialistic than previous generations, this should come as no surprise. They also cited Skype and FaceTime as a factor in reducing journeys. But real people still want real people, and Millennials still prefer to interact with their friends and family in person. Dana Boyd, Principal Research at Microsoft, agrees: “Most teens aren’t addicted to social media. If anything, they’re addicted to each other.” Elsewhere, by drilling into wider travel data, we also learned that Millennials actually travel morethan the Boomers did. Yes, car journeys are down, but air-travel is up. Millennials still aspire to travel. Its just low-cost flights abroad are the new road-trip staycations.
Don’t get me wrong, smartphones are clearly here to stay, but their mass uptake means they are increasingly difficult to justify as a lifestyle signifier. Meanwhile, the deep-rooted allure surrounding the car, and the benefits it brings, remain strong.
Cash-Strapped — For Now
House prices, education fees, high unemployment, falling incomes, recessions and the rising cost of car ownership have all conspired to put cars out of reach for Millennials. More than ever before, young people live with their parents, so when faced with such adversity, it’s inevitable they’ll travel less and even rely on their parent’s cars instead of buying their own.
The young people we spoke to confirmed that a lack of cash is a barrier. This also explains the rise of car sharing — which tends to make a virtue out of an economic necessity. Purchases are instead being delayed until later in life when they anticipate having more financial clout. Indeed, wider life milestones like first jobs, buying a home, marriage and parenthood are also being delayed — a far reaching social shift predating the recession. But a J.D. Power study in July last year confirmed that starting a family often drives Millennials out of cities and acts as a key trigger for a car purchase: “As Millennial consumers enter new life stages, earn higher incomes and grow their families, their ability and desire to acquire new vehicles is increasing.” Deloitte and MTV have also since reported that Millennials are passionate about cars after all.
Car ownership may not be a priority — even a possibility — for many Millennials right now, but that will change, and soon.
Millennials want their own wheels, but questions remain…
While Millennials clearly have different behaviours to previous generations, there are also striking similarities in attitudes, needs and desires around cars. Make no mistake; Millennials want their own wheels. But while the car still represents many of the things it did for previous generations, its unlikely they will want the same car as their parents. The real question is not if Millennials will buy cars, but what they will buy, and why. Which raises further questions…
How do those enduring meanings of the car — freedom, status and individuality — translate to Millennials? Technology and connectivity are clearly important, but how should they be manifested in the brand, product, design and user experience? Is there an opportunity to target Millennials more specifically or does the demise of Scion in the USA suggest otherwise? Finally, small, efficient cars have proven popular with Millennials so far, but will they follow their parents and buy SUVs as they get older, wealthier and have families?
Whatever Millennials want from cars, its time manufacturers questioned conventional wisdom. The real challenge is developing a deeper and more nuanced view of Millennials within the wider socio-economic, cultural, technological and mobility landscape.
Richard Green is a senior product and design strategy consultant at Plan in London. He specialises in the automotive and technology sectors and provides advice to clients including Ford, Toyota, Yamaha, Boeing, Microsoft and Samsung.
