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Will COVID-19 Push Millennials to Buy Cars?
A Capgemini Global Survey says Yes
The Capgemini Research Institute conducted a survey in April of 2020 titled, “COVID -19 and the automotive consumer : How can automotive organizations re-engage consumers and reignite demand?” (PDF link) The study of 11,000 consumers, in 11 countries (the US, the UK, France, Germany, China, the Netherlands, Sweden, Norway, Italy, Spain, and India,) reached some surprising conclusions.
Key findings from the report:
- More people will buy cars due to hygiene concerns, especially millennials, which is a key reversal of their historical preference
- Consumer appetite for ride-sharing apps and public transport will reduce significantly
- Car buyers are moving online
In the US the trends look similar to the rest of the world with 34% of U.S. consumers considering buying a car in 2020, which is on par with the global number of 35%, but far less than China at 61%. Of greatest interest though was that 45% of people under 35 years old plan to buy a vehicle and half plan to use public transport less often.
I spoke with CBT News at the end of May about the study and the potential ramifications for the US car buying market.
