It’s Not Just Car Audio…

share on:

…It’s the Whole Car Snubbed by Millennials

Young people, who rather be online than in a car, could cost the auto industry sales of  2 million cars a year.

Scion xB
Discontinued xB from Scion, a brand aimed at Millenials

The rate of sales to younger adults, 18 to 34 years, fell to 11 percent in April of this year, down from 17 before the recession (in 2007), said R.L. Polk & Co.

Gen Y represents a pool of 80 million people, whose lower wages and tendency to favor smartphones over 4-wheel freedom, may cause the auto industry’s rebound to cap at about 15 million units annually, instead of returning to the 16 to 17.4 million units per year it enjoyed prerecession, according Dan Luria, an economist at Michigan Manufacturing Technology Center in Plymouth, Michigan, reports Bloomberg.

“Now, technology not only competes” with cars, Luria told Bloomberg. “It competes and wins.”

Young people are also less likely to get a driver’s license.  The percentage of 20-to-24-year-olds with driver’s licenses dropped to 81 percent in 2010, down from 92 percent in1983.

But when Gen Y’ers (also called Millennials) do buy a car they are willing to pay for infotainment with better smartphone or Internet connections, according to a Deloitte study.  This shows the demand for advanced technology in car electronics remains strong.

Source: Bloomberg

share on:

2 Comments

  1. Hire an American and we will buy!
    5.5 to 6 years no job no unenployment ex.. I can’t buy anything let alone a car, and my cars about 20 years old, we got it when it was 1- 2 years old.
    Try getting a job in your 50’s…………… worked in Car audio for 17 years retail.

    I have an Idea for the car that will keep kids in the seat when they have money to buy one.
    I’m not nor have I ever been union but next time you buy somthing make sure it says MADE IN THE USA! Or demand Made in the USA we all depend on it!

  2. The economy’s the thing. A significant number of people who want and need a new car cannot buy one. Bankruptcy, foreclosure, job loss, etc… This economy has effected all of us, and car audio will not improve potentially until people have disposable income again, and feel comfortable spending it. However if the industry would simply address the long standing obstacles that WE have created, I suspect we would have all the customers we would like.

Comments are closed.