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The Millennial generation is quickly claiming a big share of the auto market in Africa. With the young population- below 35 years-making up more than half of the African population, it was just a matter of time before their impact began to be felt in this sector. Indeed, this generation, spanning birthdates between early 1980s to early 2000s, already makes up 2 of every five car buyers according to a research by Delloite, and this figure is projected to grow to 75 % by 2025. What makes their entry grand is the fact that their needs are notably different from those of generation X and the earlier generations. Let us see some of the features they are looking for in the cars they buy.
The well-educated cohort that has learnt the effects of climate change and heeds to simple economics, the generation Y now appreciates the need to save on fuel. This is for environmental conservation reasons, as well as saving an extra penny in the face of the prevailing harsh economic conditions in Africa. This is perhaps underscored by the fact that the majority in this cohort are still low income earners still at the initial stages of life formation. For this reason, cars fitted with CVT (Continuously Variable Transmission) mechanisms score better. These include Honda Accord, Toyota and some Subaru.
Pimping, performance and technology gadgets
The generation Y represents the digital generation. This generation cannot be separated from technology devices such as navigation tools, voice activation, sound systems, information and entertainment platforms, etc. Manufacturers are thus swiftly responding to these needs and making technology oriented cars with these features pre-installed. For this generation, the bigger interest is remaining connected and not driving. Ford is a leader in this response. To sum up this trinity, generation Y members do not compromise on performance of their engines. Partying is a core activity once in a while, and a high performance engine is desirable.
Good marketing experience
The millennial generation is also peculiar for another reason: desire for quick, efficient and less stressing process of buying cars. For instance, this cohort is not willing to haggle with the vehicle dealer. Also, this stresses the point of overreliance on technology to solve most of the problems. A report has established that a generation Y member visits an average of 25 websites before making a decision on which car to buy. As such, they move to the dealership furnished with adequate information about pricing and terms of sale including those of the dealer’s competitors.
This generation is changing, not only the specifications of the vehicles required in the African market, but also the manner in which they are delivered.