Report: Gen Y is about to buy a lot of SUVs
Ford Motor Company is predicting millennials will be buying more SUVs by the end of the decade.
In a report released on Wednesday, Ford predicted millennials – those between the ages of 20 and 35 – will drive future growth of the SUV market as they become homeowners and begin family life.
There are 85 million millennials, also known as Generation Y, in the U.S., according to Ford’s research and the automaker is anxiously paying attention to how this generation shapes the SUV market.
“As [millennials] move into their first homes and start families, more often than not, it will be an SUV in the garage,’’ said Erich Merkle, Ford sales analyst in a statement. “SUVs are the family vehicle of choice.’’
Ford’s research indicates one third of all vehicles currently purchased by millennials is an SUV, which is 26 percent higher than it was in 2009. Ford expects SUVs to become the largest vehicle segment in the U.S. by 2020, when the oldest millennials will be 40 years old.
Ford has a very good reason to be watching millennial car-buying habits so closely. According to findings from marketing firm Maritz Research, Ford ranked fourth among millennial buyers in terms of brand consideration in 2008. By 2013, Ford had jumped to number one.
But millennials are also doing things that could make an SUV very handy. According to the Ford survey, 58 percent of millennials are married or in a domestic relationship. The report also found 90 percent have a valid driver’s license and 71 percent drive themselves around.
Check out the cars U.S. News and World Report considers the most family-friendly.
[bdc-gallery id=”1426973″]
To comment, please create a screen name in your profile
To comment, please verify your email address
Conversation
This discussion has ended. Please join elsewhere on Boston.com