Gen Y begins to embrace Hyundai, Kia

(November 19, 2010) TUSTIN, Calif. -- Results of a just released study on Generation Y new vehicle buyers in the United States shows Honda and Toyota top the list of brands most purchased by Generation Y new car buyers in 2010, followed by Ford, Chevrolet and Nissan.

New to the top 10 brands purchased list in 2010 are Hyundai and Kia, at spots 6 and 8 respectively.

Displaced, and no longer in the top 10, were Mazda and Jeep, who last year were in spots 6 and 8. While neither Hyundai nor Kia even made the top 10 in 2009, Elantra, Forte, Sonata and even the Santa Fe caught GenY’s attention in 2010.

Top 10 Vehicle Brands Purchased by GenY*

1

Toyota

2

Honda

3

Ford

4

Chevrolet

5

Nissan

6

Hyundai (15 in 2009)

7

Volkswagen (14 in 2009)

8

Kia

9

Dodge

10

Subaru

*Based on % of GenY purchasing each brand

AutoPacific’s study – “The Generation Y Opportunity” – is based on the results of AutoPacific’s annual survey of over 42,000 new car and light truck buyers in the United States. The study looks closely at Generation Y recent buyers of new vehicles and how they compare to older generations. In many ways, Generation Y is following in the footsteps of their Baby Boomer parents.

But this generation of consumers who care more about communicating and staying connected than about vehicles and transportation has some very unique traits that will drive the future of the automotive industry. The AutoPacific study is conducted annually to determine who Generation Y buyers are and what they want from their future cars, including size, engine, transmission and attributes like entertainment features, luxury features, in-vehicle communications and comfort and convenience features.

“The fact that Generation Y has a bigger footprint in brands like Hyundai and Kia than in past years means these brands are definitely doing something right to gain GenY’s attention. However, AutoPacific focuses our analysis on the future and that’s where these data start to get interesting” says George Peterson, President of AutoPacific.

“As GenY matures, changes life stage, and gains more spending power, they tend to focus on more historically reliable and aspirational brands, like Honda, Toyota, BMW and Ford. When AutoPacific asked the same GenY new vehicle owners what brands they would consider for their next vehicle,

Honda and Toyota topped the list, followed by BMW, Ford and Nissan, but Hyundai lingers down at number 20 and Kia at 25, behind Audi, Dodge and Volvo. “Future consideration is a key metric of long-term brand value,” says Peterson. “While enjoying their current sales success, we’re certain that Hyundai and Kia are working hard to assure that their future brand consideration improves." 

Top 10 Future Brand Consideration by GenY

1

Honda

2

Toyota

3

BMW

4

Ford

5

Nissan

6

Chevrolet

7

Acura

8

Audi

9

Lexus

10

Volkswagen

What brand is poised for future recognition? Buick. Though Buick brand consideration with Gen Y is considerably lower than that of older generations, the brand has achieved the biggest jump in Gen Y consideration from 2009 to 2010. Coming from 39th position in 2009, with 5% of Gen Y willing to consider the brand, Buick moved up 11 spots to 28th in 2010.

“Buick has produced some beautiful vehicles with the Enclave, LaCrosse and the new Regal, all contributing to increased sales from 2009 to 2010, but, like Cadillac in past years, Buick has an “old” image to overcome in order to continue reaching a younger demographic” says Peterson. Even the Enclave, designed to comfortably seat a large family in a convenient and flexible package, has appealed primarily to the over 60 crowd while competitors like the Acura MDX and Audi Q7 grab the Young Baby Boomer crowd.

The game changer: perhaps the Buick Regal. It’s price tag and amenities fall right in line with GenY’s future purchase plans. Time will tell if this generation gives it a chance.

Is it imperative that you gain the acceptance of this finicky group of consumers? “Yes” says Peterson. “Generation Y spans a large segment of consumers that includes high school students, college students, career starters, young married couples, young families, and more. As GenY continues to mature, their penetration of the new car market will be instrumental in shaping the products available in the future.”