The Merrill Lynch analysts also highlight higher levels of Millennials using public transportation and bikes.ĭespite the seemingly bad news, Merrill Lynch notes that the recession did stunt the financial growth of millennials. Today, Millennials of the same age make up just 8%. "įor instance, in 1975 Baby Boomers age 20-24 made up nearly 14% of all licensed drivers.
Vehicle miles driven by Millennials have declined throughout the recession, and the rate of licensed drivers in the Millennial age range is at its lowest point. Obtaining a driver’s license was once a rite of passage for teenagers, but Millennials are in no hurry to get behind the wheel. "Millennials are less car-centric than previous generations. Additionally, ADAS suppliers stand to reap the benefits if automakers try and attract young people. Ford, however, only offers such technologies as a package in its Focus but not Fiesta.
Looking at US carmakers entry-level cars, General Motors already offers both lane assist and collision warning in its Sonic and the new Spark will too. He says by focusing on putting these technologies, such as lane assist and collision warning, into small cars and crossovers, automakers can capture these demographics. In addition, the other substantial gain in predicted density is among 45-55 year old parents of children under 18, parents buying cars for new drivers in the house.īetween new drivers wanting the latest technology and parents worried about their kids, Michaeli emphasizes the attractiveness of advanced driver assistance systems, or ADAS. Over the past five years, the only age group consistently saying they are planning to increase density is 18-34 year olds.
Michaeli focuses on survey data that asks people if they are likely to increase their density (from buying a new car) in the next two years. Basically, density is the measure of how many cars one household owns. Michaeli's analysis is based off Citigroup's density survey.