The Polk Blog

Raise your hand if you recall the classic MTV video by the Buggles titled "Video Killed the Radio Star."

In an Ad Age article, they discuss a similar effect of obsolescence for the auto industry. In a nutshell, its premise is that cars are less relevant to younger Americans due to a higher level of attention on the "digital world." Possible translation: younger folks won't buy as many cars tomorrow. The article focuses only on the U.S. Did anyone tell them about booming markets like China?

With or without the Internet or other digital marketing assets in their face, Chinese consumers are buying autos. Between now and 2015, China's light vehicle auto market will be 17.5 million big based on our light vehicle forecast (and this is nearly 10 million more than what was selling there in 2008). China overtook the U.S. in national sales in 2009 and we are not seeing a change of ranking any time soon.

My point? While the U.S. economy supports a fantastically diverse consumer base (that still doesn't save as much as it probably should), autos are a fact of life to all age groups. AND you should look at other emerging nations before concluding that autos are absent from one's psyche. Tell me - how will tomorrow's youth pay for their technology fix? Despite fewer jobs for an inexperienced labor force, Gen-Y/Millenials/whatever demographic cohort you choose, they still have to earn money. And getting to a job takes wheels.

I'd argue a better video for tomorrow's auto market might be Sammy Hagar's classic "I Can't Drive 55." While younger buyers aren't the ones dropping coin on Mustangs, Porsches or even more affordable Chargers, speedy and trendy small cars like the Ford Fiesta will get younger buyers to the Apple store pretty fast...with gas money left over for their iAccessories.

Posted by Lonnie Miller, Vice President, Marketing & Industry Analysis, Polk (06.02.2010)