As baby boomers are currently the biggest group in terms of buying power in vehicle sales—this particular generation spends the most for each of the cars they buy—automakers are taking notice for the arrival of a new group that not only outnumber the boomers but also demand different types of vehicles. The choice of vehicles for Generation Y (aka Millennials) have car manufacturers in a haze—although the younger generation represents about 40% of the nation’s potential car buying population, fewer and fewer Millennials are even considering to take part of the American car culture.
With a preference for tech friendly features and environmentally conscious machinery set in a luxurious space but at an affordable price, what seems like Gen Y’s high maintenance checklist is what automakers are trying to figure out. But as the price of luxury cars decreases, it wouldn’t be surprising for Millennials to purchase a luxury car as their first new vehicle.
Some brands have already shifted their focus on the next generation. Noticing Gen Y’s preference for smaller vehicles, Audi has high expectations for the next-generation A3 sedan, creating a “third leg” for the brand.