Introduction
Introduction
Gen Z is reshaping the automobile market China’s new energy vehicle (NEV) penetration rate reached 48% in 2024, with consumers aged below 30 accounting for over 40%. The purchasing preferences of Gen Z (born between 1995 and 2010) are profoundly influencing automakers’ product strategies and marketing approaches. Unlike traditional consumers, Gen Z looks beyond the “three major components” (battery, motor and electric control) when buying cars, placing greater emphasis on “technological sense”, “social attributes” and even “emotional value”. Why are they so different? What are the likely trends? This article analyses the “consumption code” of Gen Z regarding NEV.
2025 trends – what is Gen Z most willing to pay for?
» Large space: Due to their mature technology and diverse model options, non-electric vehicles can meet different consumers’ space needs. For instance, some non-electric vehicle brands provide spacious interiors by optimising wheelbase design, particularly suitable for families and long-distance travel. Non-electric vehicles also offer a range of models – from economy cars to luxury SUVs, sports cars and off-road vehicles, catering to various consumer demands.
» Low fuel consumption: Although NEVs have made significant technological advancements in recent years, fuel vehicles still have an advantage in fuel economy. The hundred-kilometre energy consumption cost of fuel vehicles is approximately RMB58, while pure electric and plug-in hybrid vehicles have lower hundred-kilometre usage costs. However, their fuel consumption performance under depletion conditions is still inferior to that of traditional fuel vehicles. Moreover, fuel vehicles offer short refuelling times and long driving ranges, especially convenient in remote areas with fewer gas stations.
» High resale value: Due to their mature technology, low maintenance and repair costs, and strong circulation in the usedcar market, non-electric vehicles generally have higher resale value. For example, the one-year resale value of non-electric vehicles was 64%, and the three-year resale value was mostly above 50%, significantly higher than that of pure electric and plug-in hybrid vehicles. Although the resale values of NEVs are gradually improving, they still struggle to match those of nonelectric vehicles.
Conclusion
A comparison of Gen Z with other age groups reveals that their demands, preferences and perceptions of vehicles bear the distinct imprint of their generation. Gen Z is also a cohort that places greater emphasis on self-awareness and personal feelings. They seek resonance in values – a brand that truly “gets” them, a brand centred around them – not merely a transactional buyer-seller relationship. For automotive brands, winning over Gen Z entails a process of continuous engagement: discarding hierarchical barriers to actively listen and empathise.
How Acuity Knowledge Partners can help
We help clients understand industry trends and reduce decision-making costs. We also assist automakers in clarifying target markets, product positioning and differentiated competitive advantages. Sector experts work with our clients’ strategy, business development, market intelligence and M&A teams, supporting them with critical insights.
About the Author
Qian Teng is a business consultant with nearly four years of experience at Acuity, specializing in market intelligence and data-driven decision-making. Her core expertise includes advanced data collection methodologies for market analysis, trend analysis to identify industry opportunities and news tracking for real time market monitoring.
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