Key Takeaways from the Gen Z Automotive Preferences Insights Report: Part 2
Recently, Ipsos and B-Insights released the Gen Z Automotive Preferences Insights Report (Z时代汽车观洞察报告) which shares some key trends related to this increasingly important buyer group. In our first article, we gave some background on the growing influence of Gen Z buyers, whether it’s the growing number of Gen Z’s purchasing their first car, or the influence they have on their family members’ automobile purchases. In Part 2 of this series, we will share how Gen Z think about cars and some of the key factors they take into consideration when purchasing one.
A Means of Expressing One’s Personality
For Generation Z, cars are more than just transportation, they’re also a way to express themselves. This often means that Gen Zs have a very clear understanding of what type of vehicle they’re going or willing to purchase.
According to the report, the first thing they consider when purchasing a vehicle is safety, with 55% of Gen Z buyers saying they are choosing a vehicle based on the vehicle’s safety ratings. Although Gen Z buyers have a lot say in what type of car they want to purchase, oftentimes their parents or grandparents are the ones that are paying the bill. So to them, safety is number one concern for their loved ones and the top thing that needs to be taken into consideration.
But then after that, the second most important thing for Gen Z is design and styling. 49% say they choose a vehicle based on design and styling, which is 19% higher than millennials (Gen Y).
Interestingly, performance and handling is all the way down at #5.
Data also shows that 75% of Gen Z car owners use their car for daily commute, and 73% for family related use and 73% for road trips.
An Important Extension of Their Personal Space
Apart from practical use, many Gen Z buyers are under the influence of social media and the desire to project a certain personal image, so to them a car is so much more than just means of transportation.
In fact, 47% of Gen Z thinks that a car is an important extension of their personal space where they can find their own peace of quiet. 36% of Gen Z thinks that a car allows them to express themselves. Just like fashion, with aftermarket customizations and brand image, owning a cool car can be perceived by others as stylish and trendy.
Intelligence is Key
According to Ipsos’s survey, the top 6 automotive topics are smart transportation, automotive entertainment, automotive customization and DIY, racing, road trip and car models (hobby).
Among them, 40% of Gen Zs are interested in smart transportation. To many Gen Zs, a car isn’t just a driving appliance, it needs to be intelligent. Self-driving, intelligent voice recognition and in-car artificial intelligence are some of the top features that Gen Z buyers are looking for when searching for their next vehicle.
The trend of “China-chic” (GuoChao) is also influencing the automotive industry.
The China-chic trend in the fashion industry has raised awareness of appreciating traditional Chinese culture. However, it did not stop there, it also expanded the concept of “Made in China” among Gen Z consumers to many other types of products.
Generation Z grew up in the “take-off” stage of China’s economy and witnessed the development and rapid growth of domestic brands. Many Gen Zs are increasingly more confident in buying domestic brands over foreign brands. Research shows that Generation Z’s preference for domestic car brands is only second to German car brands that have 100 years of making automobiles under their belt.
47% favor domestic brands over foreign brands, and the top 5 reasons are technology, cost effectiveness, reliability/quality, design and functionality.
Interestingly, when compared to the top 5 reasons of purchasing foreign brands we can see some similarities. This further shows that from the Gen Z buyer’s perspective, the gap between foreign and domestic brands are shrinking.
Gen Z are Drawn to New Energy Vehicles
The internal combustion engine has deeply influenced many generations as the way a vehicle should be powered. Oftentimes the type of engine a car had was one of the deciding factors for purchasing a vehicle.
However, with China tightening down on environmental controls, many Gen Z automotive buyers see new energy vehicles as the alternative. Research shows that 39% of Gen Z buyers are choosing alternative energy vehicles. Among them, 61% said they purchased them for environmental protection reasons.
Many new energy vehicle brands are targeting Gen Z buyers as their primary marketing audience. Brands like Tesla have greatly elevated the reputation of new energy vehicles. With its technology and fast acceleration, many Gen Z buyers sees new energy vehicles as the future of transportation.
SUVs with multi-purpose attributes have become Gen Z’s favorite vehicle type
SUVs have always been popular among the Gen Z demographic. Research shows, 44% of Gen Z automotive buyers prefer SUVs. According to the survey, many Gen Z buyers prefer SUVs because of their high ground clearance, spacious interior, and ease of entry and exit for elderly family members. Owning an SUV enables Gen Z owners to go on road trips where the road conditions may not be ideal.
If you’re enjoying this series, check back soon for more takeaways from the report!