The ‘Gen Y’ today is biased towards vehicles that use alternative fuel technology. Craig Giffi, Deloitte Automotive Consultant, responsible for the yearly survey of the accounting firm’s ‘Gen Y’ automobile buyers, said that this generation could very well take the auto industry away from using the non-renewable sources of energy in cars.
According to Deloitte, the ‘Gen Y’ represents people who are between 19 to 31 years old. Most automobile manufacturers have realised this and are now targeting the ‘Gen Y’ with their newest models incorporating ‘green technologies.’
The North American International Auto Show held in Detroit also had a number of hybrid vehicles on display. Toyota Motor Corp. came forward with its newest small car the Prius hybrid that will hit the roads this coming spring. It will carry an affordable price tag and offer the best fuel economy in the range of hybrids. The price range of the Prius c will start from less than 19,000 U.S. Dollars and is likely to give a mileage of 53 mpg on the highway.
Ford Motor Co. at the Detroit Auto Show this year had revealed a plug-in version and a standard hybrid of its latest Fusion sedan that will be available in the market in the second half of this year. Honda Motor Co. introduced a concept model of the fresh Accord sedan that will also have a plug-in hybrid version in the market. BMW also brought forward a hybrid model of the newest 3 series sports sedan.
General Motors has also come out with tiny hybrid systems in its models like the Buick Regal, Chevrolet Malibu and Buick LaCrosse sedans. According to Erich J Merkle, Ford’s U.S. Sales Analyst said "The cost of ownership is much more important to Gen Y consumers than their parents, and the big variable there is fuel efficiency.”
As per the Deloitte survey, around 59 per cent of the Gen Y answered in favour of the ‘electrified vehicle’ in comparison to the other kind of trucks or cars. Most of them described ‘electrified’ as ‘a hybrid gasoline-electric’ automobile. Only 2 per cent were interested in a completely battery operated vehicle that shows that very few of these cars are being purchased. Merely 37 per cent of the survey respondent chose the conventional gasoline-only powertrain. Craig Giffi tags ‘Gen Y’ buyers’ preference of eco-friendly vehicles in the United States of America as ‘game changers’. "At nearly 80 million strong, they are one of the biggest automobile buying market segments and the largest consumer segment since the baby boomers," he said.
As per the firm, approximately 1 out of every 4 new vehicles sold in the current year and about 40 per cent sold in the next 10 years will be bought by the customers belonging to the ‘Gen Y’ group. The expected number of vehicles that will be sold by the automobile industry is around 13.8 million units which comprise government organisations, commercial consumers and rental firms. The customer segment of the market will record slightly lesser than 11 million automobiles.
