The rate of young people buying new cars is falling.
Auto manufacturers are constantly innovating their product designs in a modern, youthful direction, integrating more technology... to target young customers, however, a recent study shows that the rate of young people buying new cars is on a downward trend.
Along with the development of science and technology and fashion trends, car manufacturers are constantly racing to innovate product designs to expand their customer base, aiming to increase market share in an increasingly competitive market. In particular, the trend of "rejuvenating" product designs, updating new technology and features is being aimed at by car manufacturers to convince young customers. This group includes young people buying cars for the first time, individuals and young families buying new cars for work, daily travel, etc.
Therefore, it can be clearly seen that in the past 3 years, many car models from Korea, China, European cars or even Japanese car brands that are famous for their conservative nature have gradually changed to become more youthful and modern. However, car manufacturers are at risk of being "offside" when a recent study byS&P Global MobilityThe rate of young customers buying new cars is on the decline.
According toS&P Global Mobility, in the first quarter of 2025, the group of young customers aged 18-34 years old buying new cars accounted for 12%; however, in the two most recent sales quarters, the proportion of customers in this age group buying new cars dropped below 10%. Conversely, during the same period, the proportion of customers over 55 years old in the US buying new cars increased from 45% to nearly 49%. These numbers show that the proportion of young people buying new cars is on a downward trend.
Affordability is a big issue for young people looking to buy a car. According toS&P Global MobilityMonthly payments for new cars have increased by 30% over the past four years. This has increased the pressure to pay monthly expenses for young individuals and families, especially when this group of customers also has to pay loans for training, studying... after the Covid-19 pandemic.
Financial pressures are pushing young car buyers toward used cars with lower resale values and lower monthly insurance premiums. Many are even forgoing car ownership altogether, or opting for services like ride-sharing, ride-hailing, and public transit.
Although the rate of young people buying cars is on a downward trend, according toS&P Global MobilityThe group of customers aged 18-34 still bought 1.1 million new cars in the past 12 months (as of March 2025). Of which, compact urban cars are the most chosen by this group of customers. Currently, along with Chinese car manufacturers, car manufacturers such as Ford, Volkswagen... are also investing in the production of small electric cars with attractive prices to target young customers.