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Generations Y and Z Admit That Cars Are a Status Symbol!

In Germany, the majority of drivers up to the age of 34 (54 percent) view cars as a status symbol. The market research institute infas, acting on behalf of Continental in Germany, China, France, Japan, and the USA, undertook a representative mobility study in August 2024, and this is one of its main conclusions. In Germany, the mobility demands of 1,000 adults over the age of 18 were surveyed. For instance, only 25% of younger respondents to a 2017 study commissioned by HORIZONT saw cars as a status symbol.infas, Continental Mobility Study on Car Buying Trends

Overall, 84 percent of German car owners—regardless of age—think that owning a car is important. For nearly 90% of people, owning a car is necessary for errands and shopping. In Germany, most young people are really excited about automobile technology advancements. 51 percent of people aged 25 to 34 said they are excited about the advantages self-driving cars will bring, such as the ability to read, play video games, or work.

This group is particularly fond of digital voice assistants and other forms of artificial intelligence (AI), in addition to autonomous driving. In the four other nations that were questioned for the study, the degree of approval is comparable.

The results demonstrate that there are significant differences in how different generations and nations react to emerging technology like AI in automobiles, big screens, and automated driving. In response to the survey results, Philipp von Hirschheydt, a member of the Continental Executive Board in charge of the Automotive group sector, stated, “That is why we strive to provide customized solutions – market-specific, tailor-made, and modular.”

The study’s conclusions also show how the global trend toward lower-emission mobility is doing right now. The low level of acceptance of completely electric vehicles is especially noteworthy. Just 3% of all car owners in Germany drive an electric vehicle.

Nonetheless, slightly more than one-third of those who do not currently own an EV think that their next vehicle will be entirely electric (39 percent, up from 34 percent in 2022). In contrast, hybrid vehicles are quite well-liked everywhere.

Nearly half of respondents who do not currently own an electric car in Germany (48 percent) and the USA (47 percent) said in the Continental Mobility Study that they could see their next automobile being a hybrid that combines an electric motor with a combustion engine. In China, that number increases to nearly nine out of 10 respondents (86 percent).

This suggests that hybrid vehicles may help close the gap and revitalize e-mobility. Compared to their overseas counterparts, younger Germans between the ages of 25 and 34 are especially interested in electric cars, with a 68 percent share.

Generations Y and Z admit that cars are a status symbol

On the one hand, German youths under the age of 34 do not feel particularly connected to automobiles. It is one of the numerous possible modes of transportation for them, more so than for the older responders.

However, drivers from generation Y and Z, who were born in the 1990s, have a strong emotional bond with their vehicles. In Germany, over half of respondents aged 18 to 34 (54 percent) view cars as status symbols, which is twice as many as respondents aged 45 and older.

Cars are considered a prestige item by 67% of people between the ages of 18 and 34, especially those who live in big cities. The approval percentage is approximately 49% in rural and small communities.

Expectations are rising in tandem with this perception of the vehicle. For instance, 51% of respondents who are between the ages of 25 and 34 think that future cars should serve as places to work and unwind in addition to being a safe mode of transportation.

Technological advances in cars attract interest and bring benefits into focus

In Germany, younger people also view highly automated and autonomous driving favorably; around two-thirds (65 percent) of those between the ages of 18 and 34 believe this to be a beneficial development. This is the opinion of 39% of respondents who are 55 years of age or older.

As a sign of support for the EU directive requiring certain advanced driver assistance systems in new cars, which has been in effect since July 2024, about two-thirds of younger people up to the age of 34 also think that modern technologies should be required in newly registered cars in order to make traffic even safer.

Another future technology that is particularly popular with younger people is AI assistants in cars.

Almost three-quarters of respondents (74 percent) between the ages of 18 and 34 would welcome an AI voice as a service that, like a virtual travel companion, provides useful information about sights and restaurants along the route, finds the nearest gas or charging station, searches for free parking spaces or even compiles personal messages. “Younger people in particular have changing expectations of cars.

These are closely linked to pioneering technologies such as automated driving, which deliver new user experiences,” explains Philipp von Hirschheydt, adding, “At Continental, we’re already equipping cars with AI. Together with our partner Google Cloud, we have developed a virtual companion for drivers.

We are particularly proud to be one of the first automotive suppliers worldwide to integrate Google Cloud applications directly into our vehicle computers.”

Automated driving, AI and large displays compared internationally

When countries are compared, it becomes clear that Asians of all ages are generally receptive to highly automated and driverless driving.

Nearly three-quarters (72 percent) of respondents in Japan agree that the relevant technologies are a beneficial development, compared to 90% of respondents in China. More than half of respondents in the USA (56 percent) and France (60 percent) have a positive outlook. About one in two respondents (49 percent) in Germany share this sentiment.

In China, where nine out of ten respondents (91 percent) indicate they would want to have such a service, AI-powered virtual travel companions are especially popular. More over half of people in France (58 percent) and Germany (57 percent) say they would be delighted to have the technology, compared to about two-thirds in the USA (66 percent) and Japan (63 percent).

The optimal car display size for infotainment content is widely accepted in all nations. Ninety percent of respondents in China express a preference for larger displays. Eight out of ten respondents in Germany (81 percent), France (79 percent), and the USA (80 percent) said they would prefer to have their music, navigation, and car statistics displayed on huge screens.

The percentage is almost two-thirds (69 percent) in Japan. But when it comes to the specifics of technology, interests vary greatly. A slim majority of respondents in the USA (58 percent) like more colors on automobile screens, although the majority in Japan (79 percent) and Germany (57 percent) prefer simpler displays. In comparison, 69 percent of features are popular in China.

Most people in Japan (70 percent) choose a simpler digital design, but about half of Germans (55 percent) share this preference.

Regarding the issue of whether a display should be operated manually or by speech, there are also variations among nations: In Japan, voice control is especially common (67 percent), with almost half of are in favor of it in China (59 percent), while the number is significantly lower in Germany (43 percent). In the USA, just over half (55 percent) also prefer to operate a display manually.

Renaissance of the hybrid drive

The study shows that hybrid drivers in Germany have an above-average interest in all-electric mobility – a strong indication that hybrid cars can play a key role as a bridging technology for the transition to fully electric drives.

For example, 43 percent of respondents who currently use a vehicle with a combined combustion engine and electric motor say that their next car will definitely be an all-electric vehicle.

Those who drive a gasoline or diesel vehicle are significantly less open to such a switch (12 and 19 percent respectively). In addition, a clear majority (58 percent) of hybrid drivers would be willing to buy an electric car without a government subsidy.

The data suggests that hybrid vehicles are boosting people’s confidence in e-mobility and may help reduce any reservations about fully electric vehicles.

One group with significant future potential for this development is the 48 percent of respondents of the Continental Mobility Study who do not drive an electric or hybrid car and for whom an all-electric car is not currently an option, but who are considering a hybrid as their next car.

Varying degrees of interest in electric cars

The shift to electric mobility is under pressure in Germany, where sales of all-electric cars are faltering reveals the Mobility Study.

According to the latest figures of the Continental study, electric cars represent a significant share (10 percent) of the overall passenger-car fleet in China, while only 3 percent of respondents in Germany drive an all-electric car and 91 percent a car with a combustion engine (China: 80 percent).

There is potential for higher sales of electric cars in Germany, particularly among those aged 18 to 34. In this age group, around two-thirds (64 percent) of respondents believe it is certain or likely that their next car will be fully electric – a trend that gradually diminishes in older generations.

A look at age-dependent attitudes toward electric mobility reveals that, like many other technological developments, e-mobility is more appealing to younger drivers than older ones.

They are more willing to forgo subsidies: 50 percent of 25 to 34-year-olds would consider buying an electric car without government assistance. However, the willingness to fully finance an electric vehicle decreases significantly among those aged 45 and older.

Trade-off between sustainable and affordable mobility

The fact that two-thirds of respondents in Germany link the purchase of an electric car to a government subsidy is an expression of their concerns about being unable to finance an electric car on their own.

In Germany, 71 percent of respondents worry that mobility will no longer be affordable due to rising energy prices. In the 2022 Mobility Study, 73 percent of people in Germany expressed their concerns about the affordability of mobility.

65 percent of respondents fear that they will not be able to afford an electric car in the near future and 56 percent are worried that driving could soon become too expensive for them.

As a result, a clear majority (80 percent) expect policymakers to create the framework conditions to ensure that driving remains affordable. At the same time, they believe driving should be made more sustainable in the most cost-neutral way possible.

Almost three-quarters (73 percent) of respondents think that the cost of environmentally friendly cars needs to fall.

Regulatory interventions such as a speed limit of 130 km/h on highways are met with acceptance (62 percent), provided they do not lead to price increases.

Younger respondents are less price-sensitive. They are much more prepared to pay a premium for environmentally friendly cars, especially if they are completely carbon-neutral in production and operation (40 percent of 18 to 24-year-olds compared with 13 percent of 45 to 54-year-olds).

Sustainable tire solutions are welcomed across the board

The fact that sustainability is an important concern for people with cars is also demonstrated by their attitude to tires. According to the study, almost eight out of 10 drivers in Germany (84 percent) who also value tire recycling consider it important that their tires contain an increasing share of environmentally friendly materials.

When purchasing tires, younger people (61 percent of 25 to 34- year-olds) are more concerned than older people about what happens to the tires at the end of their service life.

Furthermore, according to the Mobility Study 44 percent of car owners in Germany would be willing to pay a premium for tires made from a higher share of renewable and sustainable materials. Here again, this willingness is most pronounced among 25 to 34-year-olds (65 percent).infas, Continental Mobility Study on Car Buying Trends

Study provides internationally comparable findings on many mobility topics

For the Mobility Study 2024, infas was commissioned by Continental in August 2024 to survey a total of around 5,000 people aged 18 and over in Germany, China, France, Japan and the USA about their mobility habits and attitudes to a variety of mobility issues.

In each country, the respective sample is representative of the population; for China, it is representative of the urban population. The aim of the Continental Mobility Study, now in its eighth edition since 2011, is to provide an international comparison of people’s attitudes toward current and future developments in mobility and their personal usage habits suggested the Continental Mobility Study.

The range of topics covered in this year’s study included automated driving, user experience, AI in cars, sustainable mobility concepts, mobility in urban areas, the affordability of mobility and attitudes toward government regulation in the mobility sector.

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