Gen Z Is Fueling Car Driving Boom

Despite reports of the younger generation avoiding getting their driver’s licenses, Gen Z is at the precipice of an auto driving boom years after the pandemic saw driving hit record lows.
Just under half, or 47 percent of Gen Z-ers, said they were driving even more than five years ago, according to Enterprise Mobility’s “On the Move” mobility survey.
Millennials were also contributing to the car trend, with 41 percent saying they drove more than five years ago before the pandemic hit.
This was far higher than either Gen X or Baby Boomers, who only said they drove more at 33 and 16 percent of the time, respectively.
Altogether, one in three Americans said they were driving more than five years ago, according to a survey of 3,000 U.S. adults.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, called the trend a “fascinating turn of events.”
“Over the last decade, anecdotal evidence seemed to point to many of those who are Millennial or Gen Z being less likely to drive given how connected they were to the world through smartphones and other devices,” Beene told Newsweek.
“The post-pandemic landscape, however, shifted many of their outlooks, and I think what we’re increasingly seeing is more of both of these groups willing to drive more miles for everything from work to entertainment.”
Michael Ryan, a finance expert and founder of michaelryanmoney.com, said the pandemic initially forced many young adults to move back home or to more desirable areas, but the tide is shifting.
“After years of relying on Uber and Lyft, many are now finding car ownership is more cost-effective for their evolving lifestyles,” Ryan told Newsweek. “There’s been a surge in domestic travel, with many preferring the flexibility and perceived safety of personal vehicles.”
The boom in driving will not just fuel traditional auto sales, as significant numbers of Americans indicated they were interested in driving an electric vehicle in the future.
Four in 10 Americans said they were interested, with the main motivating factors being fuel cost savings (44 percent) and a positive environmental impact (34 percent). But there are looming concerns around EV charging infrastructure around the United States.
“EV infrastructure looks vastly different across the U.S., and the reality is that current charging infrastructure in most regions does not meet the needs of drivers, with regard to availability, efficiency, reliability and convenience,” Will Withington, Executive Vice President of Global Operations at Enterprise Mobility, said in a statement.
Meanwhile, support for autonomous driving cars has waned after early interest in the innovative type of vehicle.
Around 72 percent said they prefer to be in control of the car they’re driving or riding in, according to the survey.
“Although there is some initial skepticism around AVs, we see that many consumers change their minds about the technology once they get a chance to experience it,” Withington said. “As a global mobility leader, we are actively researching and testing new technologies, listening to preferences and concerns, and working to better understand how all of this might impact the future of mobility.”
For automakers, the boost in driving activity for Gen Z and millennials could be a much-needed boost after dealing with supply chain issues throughout the pandemic.
“Increased demand isn’t just good for car manufacturers themselves. It’s creating jobs in sales, service, & auto-adjacent industries,” Ryan said.
The lower levels of interest in car driving in the older generations are reflective of the differing economic and lifestyle situations they find themselves in, he added.
“Gen Z and millennials faced a tough job market along with high student debt,” Ryan said. “All delaying traditional milestones like homeownership. Now, as their careers progress, many are playing catch-up, and that includes car ownership.”