While the ‘Gen’ generations may have expired their alphabet, the so-called ‘Millenials’ are causing angst with automotive manufacturers – that’s the ‘mail’ from last week’s media previews at the Paris Motor Show.
Seems today’s young car buyers are increasingly viewing cars as merely vehicles to get from ‘A’ to ‘B’. For them - much more important than brand image, performance, ride/handling, or even safety technologies - the main priority in their next new car purchase is its connectivityperformance.
For these young buyers, cars don’t’ so much ‘start-up’ as ‘boot-up’.
Audi made much of the Cross Coupe concept - a sneak preview to the next generation of Q models we’re told – but a big part of the media presentation highlighted the compact SUV’s performance as a mobile Wi-Fi ‘hotspot’ (the prestige German brands already have mobile Wi- Fi fitted to some models). But, significantly, for Audi, the ability for future new models to be permanently on-line is now viewed as more important than permanently four-wheel-drive – so Audi’s passion for all-wheel-drive traction has diminished and many of its current and future model ranges are 2WD.
Analysts say the current generation spends a large slice of disposable income on technology rather than cars and for high school students, iPhones and iPads represent senior status - rather than a new car.
As a job-lot, automakers have been slow to embrace the digital generation which is why the clear evidence from Paris was they’re in ‘quick-catch-up’ mode. To be fair, the industry whose ROI is historically poor - is being squeezed every which-way… worsening economic news from Europe, poor retail conditions elsewhere and tightening legislative requirements for fuel consumption/emissions and safety technology mean intense pressure on profitability for individual models.
“Now we have to make every new car a mobile Wi-Fi as well – who’s paying for this,?” was the collective call from Paris.
Of course the world’s new vehicle manufacturers will find a way – they always do – just as they’ll find ways to tick the other boxes for young new cars buyers. And those boxes would be environmental factors and better suitability for urban environments…but not without style and performance.
According to the European media, Renault has hit the sweet spot with its two-seat electric Twizzy. The passenger sits behind the driver in the funky-looking Twizzy which, thanks to its compact dimensions, can maneuver through the crowded cities of Europe even better than the Smart.
So, it seems the message for automakers is clear. Whereas before young buyers were passionate about all aspects of new cars, with the ‘Millenials’ the passion is…well, different.
They want the freedom and independence cars bring, but cars must be on the same page as the rest of their lives – and that means on-line, easily connected with the rest of their technology, environmentally-friendly and suitable for their urban lifestyles.
Of course the contradiction looming over this trend is the continuing global boom in SUV sales.
It seems when babies start arriving, young new car buyers are shocked at the massive lifestyle changes that result and SUVs are the solution to those issues…oh really, and that’s never happened before?
