Younger buyers leaving Japanese for South Korean, American brands
03-21-13, 05:12 PM
#1
Younger buyers leaving Japanese for South Korean, American brands
Younger buyers leaving Japanese for South Korean, American brands
Edmunds has taken a closer look at the buying habits of young adults. As it turns out, Gen X and Gen Y buyers are increasingly eschewing Japanese brands in favor of South Korean and American automakers. Five years ago, that wasn't the case, with more than half of all young buyers flocking to brands like Nissan, Honda, Toyota, Subaru and Mazda. But the U.S. has made up quite a bit of ground in recent years by producing inexpensive and fuel efficient small cars that appeal to a younger audience. Likewise, Hyundai and Kia have sharpened their small car games as well, and are now making more credit available to younger customers.
Those efforts have begun to pay dividends. While Japanese brands have seen their share of 18-24 year-old buyers slide by 9.8 percent between 2008 and 2012, domestic automakers have enjoyed a 1.9 percent increase. South Korean brands, meanwhile, have enjoyed the largest jump, with a 6.8 percent increase over the same time period.
SANTA MONICA, Calif. - March 20, 2013 - American auto brands are gaining strength with younger buyers in the U.S., while their Japanese rivals have taken a big step back, reports Edmunds.com, the premier resource for car shopping and automotive information. According to an analysis of new car retail registrations from R. L. Polk & Co., American brands accounted for 36.8 percent of cars bought by Americans age 25 to 34 in 2012, up from a share of 35.4 percent in 2008. Meanwhile the share of Japanese brands for the same age group plummeted from 50.6 percent to 42.9 percent during that period
But even with the incremental success of American brands, Edmunds.com found that the exodus from Japanese cars by young buyers is turning mostly toward South Korean brands. About 10 percent of new cars purchased by 25-to-34 year olds in 2012 carried South Korean nameplates, more than doubling the rate for this age group since 2008.
"U.S. automakers have burst onto the scene in recent years with small, fuel-efficient and affordable cars that really appeal to a young set of buyers," says Edmunds.com Sr. Analyst Jessica Caldwell. "But while Detroit might be chiseling away at the Japanese grip on Gen X and Gen Y, South Korean brands are taking big hacks. Not only are the Koreans making better cars for young people, but they've also worked to make credit available to young buyers who still don't have solid credit history."
The South Koreans' progress with young buyers reflects their overall growth in the U.S. market. Korean brands represented 9.5 percent of all new retail registrations in the U.S. in 2012, almost twice as much as their share of 5.0 percent in 2008.
European car labels are flexing their own muscles in the U.S. market as well, accounting for 9.9 percent of new car registrations in the U.S. last year, up from 8.5 percent in 2008. Like the South Koreans, European carmakers have delivered consistent growth among all age groups since 2008, with the biggest successes among older car buyers, thanks to Baby Boomers choosing European luxury cars post-retirement.
But even with the incremental success of American brands, Edmunds.com found that the exodus from Japanese cars by young buyers is turning mostly toward South Korean brands. About 10 percent of new cars purchased by 25-to-34 year olds in 2012 carried South Korean nameplates, more than doubling the rate for this age group since 2008.
"U.S. automakers have burst onto the scene in recent years with small, fuel-efficient and affordable cars that really appeal to a young set of buyers," says Edmunds.com Sr. Analyst Jessica Caldwell. "But while Detroit might be chiseling away at the Japanese grip on Gen X and Gen Y, South Korean brands are taking big hacks. Not only are the Koreans making better cars for young people, but they've also worked to make credit available to young buyers who still don't have solid credit history."
The South Koreans' progress with young buyers reflects their overall growth in the U.S. market. Korean brands represented 9.5 percent of all new retail registrations in the U.S. in 2012, almost twice as much as their share of 5.0 percent in 2008.
European car labels are flexing their own muscles in the U.S. market as well, accounting for 9.9 percent of new car registrations in the U.S. last year, up from 8.5 percent in 2008. Like the South Koreans, European carmakers have delivered consistent growth among all age groups since 2008, with the biggest successes among older car buyers, thanks to Baby Boomers choosing European luxury cars post-retirement.
03-21-13, 11:52 PM
#2
Say what you want, but a new Toyota is something my mom drives, other than the Scion/Subie RWD model, they have nothing that appeals to me car wise. I do like the 4wd Tacoma, 4Runner, and Land Cruiser, those are a lot of $$$$ though.
This coming from a 29 year old who happens to own two 20 year old Toyotas(a very nice 92 SC and the biggest POS 93 pickup)
This coming from a 29 year old who happens to own two 20 year old Toyotas(a very nice 92 SC and the biggest POS 93 pickup)
03-22-13, 12:04 AM
#3
Lexus Fanatic
Can you blame the younger buyers? The Koreans price them lower, the give you a better warranty, and imo better looking cars. Dynamically the cars are excellent and appealing to many buyers. If anyone disagrees just think of how many Optimas you see in a single day. I drive an LS460 and I frequently find myself eyeing the KIA Optima when they are fully loaded.
American cars are getting more reliable and appealing as well and consumers as always are looking for a great car at a great price
American cars are getting more reliable and appealing as well and consumers as always are looking for a great car at a great price
03-22-13, 06:31 AM
#4
<Exactly.
Cause and effect. Toyota/Honda raised the bar for a number of years, other car makers finally caught on and placed focus on the right areas and now they are gaining ground. Today there are many more choices for the buyer to choose with an ever shrinking "BuyerBeware" cloud overhead. Isn't this what everone wanted? More choices, good styling, better quality, decent pricing?
I'm sure glad to see better American cars on the road....except for Chrysler. Bad rental car experience....don't buy a Chrysler
I'm not hatin' - just sayin'.
Cause and effect. Toyota/Honda raised the bar for a number of years, other car makers finally caught on and placed focus on the right areas and now they are gaining ground. Today there are many more choices for the buyer to choose with an ever shrinking "BuyerBeware" cloud overhead. Isn't this what everone wanted? More choices, good styling, better quality, decent pricing?
I'm sure glad to see better American cars on the road....except for Chrysler. Bad rental car experience....don't buy a Chrysler
I'm not hatin' - just sayin'.
03-22-13, 06:36 AM
#5
Guest
Posts: n/a
If I was in my teens, 20s, the Kia/Hyundai cars seem far more appealing that Toyota/Honda in regards to style which is super important to those people.
I think Nissan has done a good job staying stylish, even if some are ridiculously awful to look at.
Seeing an Elantra next to a Corolla or Civic is really eye-opening to me, the Elantra just looks tons better to me (as one example).
I think Nissan has done a good job staying stylish, even if some are ridiculously awful to look at.
Seeing an Elantra next to a Corolla or Civic is really eye-opening to me, the Elantra just looks tons better to me (as one example).
03-22-13, 07:45 AM
#6
you nailed it, many HS kids in my neighborhood got Elantra as their first car 
If I was in my teens, 20s, the Kia/Hyundai cars seem far more appealing that Toyota/Honda in regards to style which is super important to those people.
I think Nissan has done a good job staying stylish, even if some are ridiculously awful to look at.
Seeing an Elantra next to a Corolla or Civic is really eye-opening to me, the Elantra just looks tons better to me (as one example).
I think Nissan has done a good job staying stylish, even if some are ridiculously awful to look at.
Seeing an Elantra next to a Corolla or Civic is really eye-opening to me, the Elantra just looks tons better to me (as one example).
03-22-13, 08:11 AM
#7
Out of Warranty
The Japanese manufacturers have recently lost some of their luster to Korean and even domestic US automakers. They finally got caught in the price/cost squeeze that crippled the Big 3 - rising manufacturing (labor) costs have made them as uncompetitive as we once were. The old excuse that Honda led the market by paying its workers "a bowl of rice a day", as described by American jingoists, is no longer operative. Japanese workers now receive good wages, proper benefits, and good working conditions. Korea, maybe not so much . . . yet. Financial models don't have any regard for national borders. Once you raise standards, you raise expectations of reward.
To produce a vehicle with all the qualities the market desires - including reasonable cost - requires as much engineering and manufacturing talent as all the all of the gee-whiz features. If you concentrate on the basics, focusing on value, quality, and reliability, the world will beat a path to your door. Henry Ford proved it, Soichiro Honda and Eiji Toyoda knew it, and Sam-ung Lee has figured it out. Now Sergio Marchionne is leading the charge for Detroit.
That's the "American" way.
To produce a vehicle with all the qualities the market desires - including reasonable cost - requires as much engineering and manufacturing talent as all the all of the gee-whiz features. If you concentrate on the basics, focusing on value, quality, and reliability, the world will beat a path to your door. Henry Ford proved it, Soichiro Honda and Eiji Toyoda knew it, and Sam-ung Lee has figured it out. Now Sergio Marchionne is leading the charge for Detroit.
That's the "American" way.
Last edited by Lil4X; 03-22-13 at 06:36 PM.
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03-22-13, 09:35 AM
#8
Lexus Fanatic
I say this is a combination of younger buyers not caring much about cars these days and if they need one they don't want to spend much on it, many don't even want cars do to the expense and would rather spend the money on expensive cell phones/i pads with pricey internet service so they can update their facebook every 5 minutes. The Japanese have all but given up on the tuner/performance market aimed at younger buyers, most of the less expensive Japanese cars are still pricey and not very appealing anymore, most of the Japanese cars younger buyers want are way too expensive for them to afford, South Korean and American brands have stepped up their game and many younger buyers don't care if the quality maybe a little lower on the less expensive competition. When it comes to fun cars Americans and South Koreans are offering more selection for less compared to the Japanese who have given up on most of the fun cars.
Most of this generations younger drivers don't dream about sports cars or have posters of Ferrari's, Porches, Lambo's, Supra's, Skylines, 300zxtt's, RX-7's, NSX's hanging on their walls like most of us did and the ones that do there is not much from Japanese makers to appeal to them these days.
Most of this generations younger drivers don't dream about sports cars or have posters of Ferrari's, Porches, Lambo's, Supra's, Skylines, 300zxtt's, RX-7's, NSX's hanging on their walls like most of us did and the ones that do there is not much from Japanese makers to appeal to them these days.
03-22-13, 09:45 AM
#9
Lexus Fanatic
I've been hearing this for decades. Every year you hear it, the American makes have been steadily improving quality and reliability. U.S. auto makers should have long surpassed the likes of Toyota in quality and reliability by now.
03-22-13, 10:16 AM
#11
Lexus Fanatic
Back when the Sony XBR4 was out in 06/07 it had the best LCD picture by far, I did not see any other tv's that could touch it other then then the top of the line Samsung, despite the high price the XBR4 was pretty popular due to its picture quality but other makes caught up to it after a few years and the Sony's were not seen as being so dominant. Sony tv's are still pretty much the most expensive feature for feature LCD's/LED's out and their prices are kept pretty high especially the XBR's and other top of the line models which turns off many buyers. The Panasonic Elite Kuro had the best picture of any flatscreen and everyone raved about it but due to the price they did not sell many and it was dropped, if the prices were as low as the LG's and Visio's it would be a big seller today even with younger buyers.
I don't think there is anything very special about Samsung, Kia, Ford, Chevy, or Hyundai that are appealing to younger buyers over many Japanese brands other then price, deals, though the Americans and South Koreans are offering a bigger selection of cheaper, funner, sportier cars then they did in the 90's when the Japanese dominated that segment.
03-22-13, 10:39 AM
#12
Lexus Fanatic
Edmunds has taken a closer look at the buying habits of young adults. As it turns out, Gen X and Gen Y buyers are increasingly eschewing Japanese brands in favor of South Korean and American automakers. Five years ago, that wasn't the case, with more than half of all young buyers flocking to brands like Nissan, Honda, Toyota, Subaru and Mazda.
03-22-13, 10:46 AM
#13
Lexus Fanatic
Originally Posted by Marklouis
I'm sure glad to see better American cars on the road....except for Chrysler. Bad rental car experience....don't buy a Chrysler I'm not hatin' - just sayin'.
I'm not hatin' - just sayin'.
03-22-13, 10:56 AM
#14
Lexus Fanatic
Originally Posted by Blueprint
I think Nissan has done a good job staying stylish, even if some are ridiculously awful to look at.
If I was in my teens, 20s, the Kia/Hyundai cars seem far more appealing that Toyota/Honda in regards to style which is super important to those people.
Seeing an Elantra next to a Corolla or Civic is really eye-opening to me, the Elantra just looks tons better to me (as one example).
03-22-13, 11:07 AM
#15
Guest
Posts: n/a
The Japanese manufacturers have recently lost some of their luster to Korean and even domestic US automakers. They finally got caught in the price/cost squeeze that crippled the Big 3 - rising manufacturing (labor) costs have made them as uncompetitive as we once were. The old excuse that Honda led the market by paying its workers "a bowl of rice a day", as described by American jingoists, is no longer operative. Japanese workers not receive good wages, proper benefits, and good working conditions. Korea, maybe not so much . . . yet. Financial models don't have any regard for national borders. Once you raise standards, you raise expectations of reward.
To produce a vehicle with all the qualities the market desires - including reasonable cost - requires as much engineering and manufacturing talent as all the all of the gee-whiz features. If you concentrate on the basics, focusing on value, quality, and reliability, the world will beat a path to your door. Henry Ford proved it, Soichiro Honda and Eiji Toyoda knew it, and Sam-ung Lee has figured it out. Now Sergio Marchionne is leading the charge for Detroit.
That's the "American" way.
To produce a vehicle with all the qualities the market desires - including reasonable cost - requires as much engineering and manufacturing talent as all the all of the gee-whiz features. If you concentrate on the basics, focusing on value, quality, and reliability, the world will beat a path to your door. Henry Ford proved it, Soichiro Honda and Eiji Toyoda knew it, and Sam-ung Lee has figured it out. Now Sergio Marchionne is leading the charge for Detroit.
That's the "American" way.
I say this is a combination of younger buyers not caring much about cars these days and if they need one they don't want to spend much on it, many don't even want cars do to the expense and would rather spend the money on expensive cell phones/i pads with pricey internet service so they can update their facebook every 5 minutes. The Japanese have all but given up on the tuner/performance market aimed at younger buyers, most of the less expensive Japanese cars are still pricey and not very appealing anymore, most of the Japanese cars younger buyers want are way too expensive for them to afford, South Korean and American brands have stepped up their game and many younger buyers don't care if the quality maybe a little lower on the less expensive competition. When it comes to fun cars Americans and South Koreans are offering more selection for less compared to the Japanese who have given up on most of the fun cars.
Most of this generations younger drivers don't dream about sports cars or have posters of Ferrari's, Porches, Lambo's, Supra's, Skylines, 300zxtt's, RX-7's, NSX's hanging on their walls like most of us did and the ones that do there is not much from Japanese makers to appeal to them these days.
Most of this generations younger drivers don't dream about sports cars or have posters of Ferrari's, Porches, Lambo's, Supra's, Skylines, 300zxtt's, RX-7's, NSX's hanging on their walls like most of us did and the ones that do there is not much from Japanese makers to appeal to them these days.
Some of their styling is a Joke.............oops, Juke.
Somewhat of a stereotye, maybe, but many of today's young people in that age group are more concerned with how much the car integrates with today's electronics than they are with simple styling....or most of the car's other features. A car, to them, is simply a mobile texting/E-Mail/cell-phone/Bluetooth/I-Pod device to get from point A to point B.
That's where opinions differ. I consider it an eyesore, but I admit the car is well-built, reliable, and is going out of dealerships faster than free beer at Clancy's.
Somewhat of a stereotye, maybe, but many of today's young people in that age group are more concerned with how much the car integrates with today's electronics than they are with simple styling....or most of the car's other features. A car, to them, is simply a mobile texting/E-Mail/cell-phone/Bluetooth/I-Pod device to get from point A to point B.
That's where opinions differ. I consider it an eyesore, but I admit the car is well-built, reliable, and is going out of dealerships faster than free beer at Clancy's.