Post on 12-Jun-2020
January 2016
MILLENNIALS AND
DRIVING (USA)
THE NATION’S LARGEST GENERATION IS
DRIVING LESS
Comparing Millennials today (2009) vs. Gen X 20
years ago (1995)
Young people this age who were employed in 2009
drove 7.1 miles less a day than their
counterparts in 1995.
Those in the city drove 6.2 miles less and
those in the country drove 8.1 miles less vs.
their counterparts in 1995
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Citylab July 2015, Pew Research Center
TRENDS AFFECTING MILLENNIALS 3
Sources: Wall Street Journal, Elite Daily Millennial Study 2015,, MRY Future of Mobility Study
Economic
$35k average student loan
balance for class of 2015
Delayed Life Plans
59% would rather rent a
house than buy one
Sharing > Owning
52% would consider car sharing or
ride sharing services
ABOUT THIS RESEARCH
To understand Millennial Economist readers (aged 18-34) and their mindsets when it comes to commuting, driving and car ownership, compared to older generations
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Lifestyle -What are the trends affecting their lifestyle?
-How do they currently commute? -Most important factors for a commute
Driving -Motivations in getting driving licence
-Interest in driving -Attitudes about driving
Car Ownership -The biggest motivations behind owning a car
-Likelihood to own in the future and why -Most important factors in shopping for a car
METHODOLOGY
Online quantitative study of Economist readers run by
Fox Insight in August 2015
TOTAL RESPONDENTS: 1,171
US RESPONDENTS: 479
AGE 18-34: 42%
AGE 35+: 58%
$100K+ HOUSEHOLD INCOME: 55%
ABOUT THE
RESPONDENTS
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CLICK TO ADD SIGNPOST
479 RESPONDENTS
U.S.
440 RESPONDENTS
UK 252
RESPONDENTS
GERMANY
MAJORITY OF MILLENNIALS LIVE IN BIG
CITIES 6 EMPLOYMENT STATUS AND MARITAL STATUS REFLECT GENERAL POPULATION BUT
MILLENNIALS FROM THIS STUDY ARE MORE AFFLUENT
The Economist Group Reader Panel; Age 18-34 n=201, Age 35+ n=278, MRI Doublebase 2014
7%
28%
24%
40%
2%
17%
19%
62%
Rural
Suburban
Town/Small city
Major metropolitan city
Type of area that you live in
18-34 35+
18-34
From this
study
18-34
General
population
Employed 72% 70%
Student 24% 21%
Married 27% 31%
HHI $100K+ 42% 23%
ECONOMIST MILLENNIAL READERS ARE
MORE AFFLUENT AND INFLUENTIAL 7 ECONOMIST READERS ALSO SPEND MORE ON VEHICLES
Sources: GfK MRI Doublebase 2014, Ipsos Affluent USA 2015
Household income $100K+ Economist Millennial readers: Index 196
Total Millennial population: Index 89
People often come to me for advice before making a purchase Economist: Index 160 Total: Index 125
Spend $30K+ on purchase/lease of vehicle in past year Economist: Index 206 Total: Index 129
MILLENNIAL RESPONDENTS ARE JUST AS
LIKELY TO HAVE THEIR DRIVING LICENCE
Do you currently have a valid driving licence?
18-34: 94% yes
35+: 99% yes
8 ECONOMIST READERS ARE MORE LIKELY TO HAVE THEIR DRIVING LICENCE
The Economist Group Reader Panel; Age 18-34 n=201, Age 35+ n=278 , MRI Doublebase 2014
General population
18-34: 81%
35+: 87%
THOUGH MILLENNIALS WANT TO DRIVE,
THEY’RE ALSO MORE LIKELY TO SEE
DRIVING AS A GOOD LIFE SKILL 9
The Economist Group Reader Panel; Age 18-34 n=188, Age 35+ n=276
5%
7%
12%
16%
42%
48%
81%
18%
6%
26%
15%
41%
66%
77%
I wanted a driving licence mainly for ID purposes
Other (please specify):
My parents/friends thought it was a good idea to
get my licence
I wanted to buy a car
I considered it a rite of passage to pass my driving
test
Driving is a good life skill to have
I wanted to drive
Main reasons for getting your driving licence
18-34 35+
THUS MILLENNIALS ARE ALSO MORE
LIKELY TO SEE DRIVING AS A UTILITY 10 THIS OUTLOOK MAY IMPACT WHAT THEY LOOK FOR IN A CAR
The Economist Group Reader Panel; Age 18-34 n=188, Age 35+ n=276
33%
57%
47%
55%
Driving is purely a mode of transport to get from
one place to another
I enjoy the drive as much as the destination itself
To what extent would you agree with the following:
18-34 35+
DRIVING IS THE MAIN MODE OF
TRANSPORT 11
HOWEVER MILLENNIALS ARE MORE LIKELY TO USE PUBLIC TRANSPORT OR WALK/CYCLE
The Economist Group Reader Panel; Age 18-34 n=201, Age 35+ n=278
AGE 18-34
62%
AGE 35+
40%
Live in major metropolitan cities: Transport method for majority of daily
commute:
Driving: 55% / 64%
Public transportation: 19% / 11%
Walking/cycling: 22% / 10%
I do not commute regularly: 2% / 13%
A CONVENIENT COMMUTE IS THE MOST
IMPORTANT FACTOR FOR ALL AGES 12
BUT CONVENIENCE AND COSTS ARE EVEN MORE IMPORTANT TO MILLENNIALS
The Economist Group Reader Panel; Age 18-34 n=201, Age 35+ n=278
0%
11%
13%
14%
16%
22%
42%
52%
59%
0%
5%
16%
17%
21%
32%
43%
51%
67%
I like to commute with others
Commuting is also a way for me to exercise (e.g.
walking)
Other (please specify):
This is an environmentally friendly way to travel
Ability to multi-task (e.g. read while commuting)
This is a cost-effective way for me to travel
I like being in control rather than rely on the schedule
of others
This transportation option saves me the most time
Convenience – it’s easiest for me to access this mode
of transport
Most important factors in choosing the mode of transportation for
daily commute
18-34 35+
CAR OWNERSHIP USED TO EQUAL
IDENTITY, STATUS AND FREEDOM 13 BUT TODAY’S TECHNOLOGY AND SOCIAL MEDIA ALTERED THE DEFINITION OF
IDENTITY AND STATUS AND HELPS FULFIL CONNECTIVITY
Then Now
16%
21%
The car that I drive
Which of the following best convey 'status'
for you personally?
THOUGH CARS MAY NOT CONVEY
IDENTITY TO MILLENNIALS AS MUCH 14 OVER 20% OF MILLENNIALS AGREE THAT CARS HELP CONVEY THEIR STATUS
WHICH BODES WELL FOR LUXURY AUTO BRANDS
The Economist Group Reader Panel; Age 18-34 n=201, Age 35+ n=278
18%
8%
The car that I drive
Thinking about your own personal 'identity',
which of the following come to mind?
18-34 35+
NEARLY ALL CURRENTLY OWN OR
LEASE A CAR 15
The Economist Group Reader Panel; Age 18-34 n=188, Age 35+ n=276 , Nielsen @Plan Q2 2015
Do you currently own or lease a car?
18-34: 82% yes
35+: 97% yes
General population 18-34: 74% 35+: 90%
TRANSPORT, FREEDOM AND
CONVENIENCE ARE THE MAIN REASONS
FOR CAR OWNERSHIP 16
The Economist Group Reader Panel; Age 18-34 n=155, Age 35+ n=267
76%
67% 61%
39% 36%
15%
7% 3%
85%
66%
52%
33%
40%
16% 12%
5%
It’s one of my
primary modes
of
transportation
I like the
freedom to go
anywhere at
any time
It’s convenient
to my lifestyle
I wanted to be
able to visit my
family and
friends
I like to drive I like to keep a
car for
emergencies
I wanted to
treat myself or
my family
Other (please
specify):
Why did you decide to buy or lease a car?
18-34 35+
The older generation is more likely to buy a car because of transport need while Millennials are
more likely to buy out of convenience.
NON-CAR OWNERS DON’T CURRENTLY
NEED A CAR OR ARE DETERRED BY THE
COSTS OF OWNERSHIP 17
The Economist Group Reader Panel; Age 18-34 n=33, Age 35+ n=9
Main reasons for not currently owning or leasing a car
18-34 35+
There are plenty of public transport
options in my area 73% 44%
Costs of owning a car (buying a car,
insurance, maintenance costs) 67% 33%
I can walk or cycle to get to most places in the area that I live in
48% 22%
I have access to a car via family/friends
36% 22%
The responsibility of owning a car (e.g. maintenance)
33% 22%
Other (please specify): 6% 33%
I have no interest in driving 3% 0%
1 IN 4 MILLENNIAL RESPONDENTS PLAN
TO BUY A CAR IN THE NEXT 2 YEARS 18 THIS CORRELATES WITH THEIR LIFE PLANS OF CAREER ADVANCEMENT,
RELOCATION AND STARTING A FAMILY
The Economist Group Reader Panel; Age 18-34 n=201, Age 35+ n=278
25%
20%
25%
30%
34%
29%
19% 18%
Yes, within the
next 1-2 years
Yes, within the
next 2-4 years
Yes, within the
next 5 years
No, not within
the next 5 years
Do you plan to buy or lease a car in the next 5
years?
18-34 35+
Which of the following do you intend to do in the next 2 years? (Age 18-34 respondents)
49% career advancement at current job 46% move house or relocate 19% have a baby
TOP PURCHASING FACTORS ARE FUEL
EFFICIENCY AND RELIABILITY 19 FUEL EFFICIENCY AND PRICE ARE MORE IMPORTANT TO MILLENNIALS WHILE
ENJOYABLE TO DRIVE IS MORE IMPORTANT TO THE OLDER GENERATION
The Economist Group Reader Panel; Age 18-34 n=201, Age 35+ n=278
1%
2%
4%
9%
10%
18%
19%
20%
25%
25%
25%
26%
28%
43%
45%
Payment options
Model year
Car security
Exterior design
Environmental impact/friendliness
Size of car
Comfort
High performance (power…
Car technology/innovation
Brand reputation
Enjoyable to drive
Safety rating
Affordable price
Reliability
Fuel efficiency / gas mileage
Top 3 factors in buying/leasing a car
(Total respondents)
18-34 35+
Fuel
efficiency
56% 38%
Reliability 41% 44%
Enjoyable
to drive
17% 31%
Affordable
price
34% 24%
RESPONDENTS WOULD BE MOST LIKELY TO
PAY MORE FOR SAFETY AND COMFORT 20
The Economist Group Reader Panel; Age 18-34 n=201, Age 35+ n=278
Safety technologies
18-34: 59%
35+: 68%
Comfort while sitting
in the car
18-34: 54%
35+: 65%
Alternative power sources
(e.g. electric or hybrid)
18-34: 53% 35+: 42%
Connectivity tech(e.g.
connect to smartphone)
18-34: 49% 35+: 44%
Technology that keeps
track of fuel efficiency
18-34: 40% 35+: 32%
Features worth paying more for in a car
The older generation cares much more about safety technologies and comfort while Millennials care more about alternative power sources and fuel efficiency.
TAKEAWAYS
Driving is relevant to both groups as it is the main mode of transport for their daily
commutes even though most respondents live in major cities.
However there is still room for improvement for Millennials as they are more likely to use
public transportation or walk/cycle on their daily commutes.
When it comes to commuting, both groups value convenience and time-saving over things
like cost and the ability to read on a commute. Millennials are more likely than the older
generation to value convenience and affordability.
Focus on technologies that can help with convenience – e.g. connectivity technologies
that can sync the car with one’s phone.
Although Millennials enjoy driving as much as the older generation, Millennials are more
likely to see driving as a skill/utility. This translates to what Millennials are looking for in a car
as they seem to be more pragmatic shoppers (fuel efficiency and reliability are the most
important factors).
What are interesting ways to communicate these functional benefits to this audience?
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