In spite of ongoing economic uncertainty, almost one in four (22%) Australians say they intend to purchase a vehicle in the upcoming year according to Fifth Quadrant (formerly ACA Research).
This intention unravels along generational lines, with Gen Z (27%) and Gen Y (27%) leading the charge, followed closely by Gen X (24%), and a slightly lesser 14% among Boomers says Fifth Quadrant.
It says this divide is underpinned by consumer sentiment.
In spite of 71% of respondents foreseeing a challenging economic terrain ahead for Australia over the next 12 months, 45% of resilient Gen Zs project optimism, anticipating that economic conditions will either stabilize or improve.
This sits in stark contrast to the 27% of Boomers who share this outlook off the back of concerns about the burden of rising energy bills (77%), the constant pressure of affordability for essential products (63%), and the accessibility of affordable healthcare (52%)
In line with recent automotive trends, SUVs command the spotlight, with 62% of consumers drawn towards this category for their next vehicle, overshadowing the 50% considering passenger vehicles.
This trend notably gains momentum among Boomers (71%), underscoring the appeal of these vehicles across generations. Brand loyalty also takes centre stage with Toyota (75%), Mazda (58%), and Hyundai (54%) emerging as the most favoured options for prospective purchasers.
In a twist though, Gen Z also displays a propensity for Volkswagen (49%), illustrating their willingness to explore newer avenues while still considering the established players.
Reflecting the continuing transition towards a sustainable future, almost half (49%) of potential vehicle purchasers are open to the idea of low or zero emission vehicles, with 42% considering hybrids and 22% contemplating electric vehicles.
However, Gen Z (34%) appear less likely to purchase a low emission vehicle within the next 12 months, with affordability a key factor in this decision.
“In summary, this study unpacks shifting consumer sentiments and priorities, revealing distinct generational economic outlooks that are reshaping market dynamics,” Fifth Quadrant director Ben Selwyn says.
“Purchasing intentions hold up despite a range of concerns, with Gen Z’s more optimistic outlook shining through despite the concerns they hold (e.g. rising energy bills and mental health) and contrasting with Boomers’ focus on rising cost of living pressure.
“These generational trends extend to vehicular preferences, with a notable emphasis on sustainability, led by Boomers who have the financial capability to invest in lower emission vehicles,” he says.
