A survey done by Duff & Phelps busts the popular belief that millennials prefer public transport, ride sharing or even walking over owning cars. Worldwide there’s a belief that millenials are not inclined to own cars, but 100% millennials who dwell in Indian cities and who do not own a car expect to purchase one in the next five years, findings of a survey done by Duff & Phelps show.
The survey covers not only India but other parts of the world too throw up a similar finding. But the bias in favour of owning or leasing a car in India is higher than the rest of the world. Nearly 82% Indians polled, would opt for car ownership rather than using ride-hailing services like Ola or Uber.
Interestingly, 85% millennials worldwide feel that owning a car is a necessity. The top reason being independence which comes when an individual has his/her own car. According to the survey, 88% of global millennials living in cities who have a car expect to purchase or lease another one in the next five years. In China and India, 100% of city dwellers who do not already own a car or lease a car expect to purchase one in the next five years.
According to the survey, globally 75% millennials chose owning/leasing a car over using ride-hailing services, if they would cost the same. This preference might have something to do with the high costs of reliance on ride-hailing compared to car ownership.
Given this significant difference in cost and millennials’ preference of car ownership when cost is not a factor, it does not appear that ride-hailing will likely be a significant threat to car ownership/leasing for the millennial generation, the report pointed out.
Despite the rise of hybrid vehicles in recent years, gas or diesel engines are still the preferred powertrain of choice with 54% of global respondents saying it appeals to them the most. However, 30% of respondents said a hybrid electric powertrain is most appealing, and 6% preferred an all electric (EV). In India, 67% chose petrol or diesel car compared to 33% who opted for electric hybrid.
With the Indian government’s push towards electrification, these figures can give some hope. Globally, millennial interest in the purchase or lease of hybrids and EVs could be well over 17 million vehicles. Since nearly 100 different models of plug-in vehicles are expected to come to the market by 2022. Only 49% millennials preferred to drive their own car for transportation, while 23% chose walking followed by public transit 16% and cycling 8%.
The survey concluded that concerns that the massive millennial generation will break away form past generation of car ownership appear to be overstated. The misunderstanding does not stem from a belief that millennials desire flexibility, but a misconception that cars are not the best option to provide that flexibility.