Several aspects set apart Gen Zs from the previous generations of auto buyers.
18 Nov 2024 | 7797 Views | By Apeksha Jain, Ipsos
India has an estimated 116 million people in Generation Z, also known as Zoomers, which is roughly two out of every five urban Indian consumers aged 15 to 55. This makes India the country with the largest Generation Z population in the world.
Although currently influencers or co-decision makers ...
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India has an estimated 116 million people in Generation Z, also known as Zoomers, which is roughly two out of every five urban Indian consumers aged 15 to 55. This makes India the country with the largest Generation Z population in the world.
Although currently influencers or co-decision makers in family vehicle purchases, Zoomers are poised to become primary decision-makers. Hence, whilst the average age of the Indian car buyer still ranges between 32 and 35 years, automakers must consider the expectations of a much younger cohort for future product development—a generation that is very different from Millennials and Gen X.
It is not just about the sheer base of these future customers but also their digital native mindset that makes Gen Z an interesting study.
Research conducted in this cohort reveals significant differences that this generation displays compared to previous generations: confidence, independence, freedom of expression, higher awareness and sensitivity towards global concerns such as environment and sustainability. They are more likely to research and compare products online, read reviews and seek recommendations from their peers before making purchase decisions.
The Tech Mindset
It is not new information that Gen Zs are more attuned to technology than any other generation before them. For them, the digital world is as real as the physical world itself.
Whilst technology is a given and expected in every part of their life and being, there must be seamless integration between technology in the non-automotive world and their automotive experience. Recent studies have shown that this generation is not afraid to ask questions such as, "If my mobile phone can do this, why can't my car?"
This also holds true for Generative AI. The personalisation and customisation in driving experience that the technology can offer is only a start. The brands that begin on this trajectory will undoubtedly have a much higher acceptance from this generation.
Not Shy to Try (Exploratory Mindset)
With higher exposure comes a sense of fearlessness. This generation is willing to take risks and make practical and rational choices based on the information available to them. Increasingly, we have seen the younger audience being more receptive to new brands that offer varied experiences, provided they meet their expectations.
Case In Point
There has been significant migration to electric two-wheelers amongst the younger generation. They are less dependent on their parents and peers for decision-making, as information is available to them at the click of a button.
"I am very satisfied with my current electric two-wheeler. The storage capacity is sufficient, and features such as remote locking, USB charging and removable battery are my favourites."
This heightens competition, and staying ahead is extremely important. The adaptability towards 'anything new' presents no barrier.
Convenience and Experience (Why Not?)
In the age of instant doorstep deliveries and personalised content, convenience and customisation in every aspect have become essential requirements.
Whilst this trend shows some overlap with previous generations, the key difference is that the idea of 'success' has been internalised earlier compared to their parents' experience. They value brands that can support their journey of self-discovery and enrich their experiences.
Generative AI is likely to play a more significant role due to this changing definition of success. Whilst traditional values that make a car successful will likely continue, differentiation will emerge from higher levels of personalisation and an elevated experience that the vehicle can provide.
Convenience is a by-product of experience and is increasingly becoming a standard expectation. This generation expects all brands to maintain both physical and online presence, with capabilities such as immersive vehicle experiences via VR from home becoming commonplace.
Sustainability: A Core Value
Additionally, Gen Zs place a high value on sustainability and environmental consciousness. They are more likely to support brands that prioritise eco-friendly practices and offer electric or hybrid vehicle options. This attitude, combined with their minimalistic mindset, means subtle designs are preferred over flashy, overdone aesthetics.
Modern EVs excel by offering advanced automation and technological integration, with software-driven features and AI creating more intuitive and relevant experiences for a digital future.
In Conclusion
Gen Zs, being more socially conscious, are already demanding attention. They believe that brands today still focus predominantly on older age groups, a sentiment particularly strong in India compared to other countries. Brands must increase their focus on this cohort to maintain relevance.
The age of 'always-online' consumers will bring significant changes to expectations from automotive brands and businesses. Generative AI technology has enabled personalised experiences, enhanced design and improved overall customer satisfaction. The always-online nature of Gen Z consumers demands a strong online presence, transparency and commitment to sustainability. By embracing these changes and catering to the evolving expectations of Gen Zers, automotive brands can thrive in the dynamic Indian market.
Apeksha Jain is the Director and Country Service Line Leader, Ipsos Automotive and Mobility Development (AMD). Views expressed are the author's personal.