By Jamie Barrie A uto makers believe a surge in ownership is coming from the younger demographic groups. While millennial urbanites and members of the Gen-Y group have been reluctant to dive into the market, several motives will drive demand such as the need to stay connected professionally and socially, a desire to align their personal brands with their ride and the simple obligation to haul kids to soccer practice. At this point of new-car manufacturing, connectivity is assumed. Younger buyers would no more purchase a car lacking Apple CarPlay and Android Auto, then hit a pub without craft beer on the menu. A year ago Apple CarPlay wasn’t in many cars and if you do not offer it now you are forgotten as a player in the industry. Millennials look got the opportunity to match their personal brand with the auto maker’s image. Industry experts see the trend where people want to own something, they want to call it their own personal brand, especially with the premium brands. Millennials want the aspiration of people, they want to show that they have achieved a level of success. This is why Premium auto makers have introduced entry-level vehicles in the mid-$30,000 price range and most auto makers will certify previously owned cars at attractive mileage levels to induce first-time buyers. “On the Land Rover side, the demographics of the consumer is the youngest in the luxury segment; not a lot of people know that,” Sam Pirillo, Jaguar Land Rover sales director for Canada said. “With the Jaguar product that is coming into the marketplace, we expect the same sort of shift, to a younger demographic. We’ve seen it already in the initial studies.” In efforts to lure younger buyers into the market, auto makers like Honda and Scion introduced Element and xB models, but those trends where quickly discarded and never were a big hit with their target market. Industry results so that Millennials and Gen-Ys are more inter- ested in crossovers and SUVs. Most Premium Auto makers are looking to capitalize on this and are planning to introduce a fleet of new or remodelled versions of utility vehicles presently on the market. One of the models would be the new Jaguar F-Pace, which start at $49,900. J.D. Power recently released a report on the buying behaviours of mil- lennials, people born between 1982 and 1994, which was based on 600,000 survey responses. The report concluded that millennials are generally more satisfied con- sumers than baby boomers, but have a low tolerance for product delays and recalls. It also shows that millennials demand exceptional customer service, and seek strong value for their money, which is another reason that you are seeing the industry shifting to lower priced vehicle with amazing offering of accessories to get these young drivers behind the wheel.
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JUNE 2016 • SPOTLIGHT ON BUSINESS
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