Generation Z consumers to spend big on cars

Generation Z consumers are an emerging buying group for automobiles in China, as about 40 million of them will have the demand and be willing to buy cars over the next five years, a new report said.

Consumers born between 1995 and 2009 have their own distinct consumption preferences compared with their predecessors, according to the report jointly released by auto information provider Autohome and consultancy Deloitte.

Generation Z consumers are more willing to spend on cars and they are more eager than their predecessors to use financial products such as loans to buy cars, the report said.

Generation Z consumers in China account for 15 percent of their household expenditures, in comparison with the 5 percent in France and 4 percent in the United States, said the report which was released at the China Automotive New Consumption Forum.

The annual sales volume of new energy vehicles in China is likely to hit 3 million units in 2025, thanks to technological advancements and consumption upgrades including Generation Z consumers' desire for better products, according to another report released by Autohome.

Fu Bingfeng, deputy secretary general of the China Association of Automobile Manufacturers, said China so far has 4.6 million new energy vehicles on road.

"The number is scheduled to hit 5 million units by the end of this year. I think the target can be met, judging from the current situation," Fu said.

Zhang Jingyu, co-president of Autohome, said automobile makers and retailers need to make more efforts, including upgrading their marketing strategies and after-sales services, to adapt to Generation Z consumers' changing shopping preferences.