US: millennials can change the auto industry thanks to huge purchasing power image

Numerous studies have been dealing with the latest developing generation – the so-called Gen-Y – meaning those that were born after 1980 and when it comes to their collusion with the auto industry – they all point out to their different view.

Actually, a recent study also points out they could have the financial power to also reshape the whole industry to better fit their image, with people born between 1980 and the late 1990s forecasted to represent around 25% of the new vehicle market in the US in 2015. According to data tracking service TrueCar they would commend sales of 4.24 million units – roughly around $135 billion in purchasing power. “Improving economic conditions are shifting the rhetoric around Millennials and car buying,” said TrueCar President John Krafcik. The recent views are in deep contrast to earlier research that called millennials at best indifferent to autos. But, as they grow older, they seem to follow the path set by previous generations, with an MTV study showing that 70% of millennials “like driving a lot,” as opposed to 66% and 58% when it comes to Gen-X and Baby Boomers, respectively.

The reasons could be tied to America’s recent emergence out of the 2008-2009 crisis – immediately after the millennials were among the hardest-hit, with record unemployment, little spending power and huge college debt. Now, the MTV study found they average 144 miles more behind the wheel each month than other generations manage. Also called “digital natives,” TrueCar believes the generation is attracted to anything technological, including automobiles, but especially new technology, “specifically mobile devices.”