How does lack of Gen Z drivers affect the aftermarket?

The next generation of drivers might not be drivers at all — and that’s a growing concern for the auto aftermarket, a recent report suggested.

The analysis from Lang Marketing found a dramatic shift in how Gen Z teenagers view cars. Spoiler alert, it’s not good news for the traditional auto industry. Nearly half of 18-year-olds in the U.S. don’t have a driver’s license, a sharp contrast to the 1980s when only 14 per cent of teens skipped the so-called rite of passage.

“Most young Americans believe that decisive steps must be taken to reduce the threat of climate change,” the report states. That belief is reshaping how Gen Z sees vehicles — not as symbols of freedom, but as environmental liabilities.

Recently, car sharing marketplace Turo noted that the typical Canadian consumer found owning a vehicle more of a burden than a symbol of freedom.

Why Gen Z is ditching the keys

Three major forces are driving this change: Climate concerns, social media and shifting cultural values. Many teens now see fossil-fuelled vehicles as harmful to the planet, according to Lang. At the same time, social media has replaced the need to meet up in person, reducing the desire — and urgency — to drive.

Ride-hailing services like Uber have also made car ownership feel unnecessary. For Gen Z, cars are no longer tied to identity or independence. Instead, they’re viewed as tools — and sometimes, as problems.

Further, at AAPEX last fall, it was explained that it wasn’t that young people didn’t want to drive, but rather they couldn’t afford to at that point in their lives. As they progress in their lives, such as through their career or starting a family, then the need for a vehicle grows and they eventually buy one.

“It might not be the rite of passage it was when I was 16 to get a car, but they’re still coming to owning vehicles as they age. It’s just not happening as young as it did in the past,” explained Todd Campau, then-associate director of the aftermarket at S&P Global Mobility.

Fewer miles, fewer parts

This generational shift is already having ripple effects. Gen Zers who do get their licenses are driving less than older generations. That means fewer oil changes, brake jobs, and replacement parts — a troubling trend for the aftermarket.

Lang Marketing noted that the average vehicle travelled fewer miles last year than it did in 2014. Slower growth in licensed drivers and reduced vehicle use could put long-term pressure on aftermarket product demand, it said.

What comes next?

Mobility as a Service (MaaS) — think Uber, car-sharing, and subscription models — could become the norm for future drivers. If that happens, the aftermarket will need to adapt to a world where fewer people own cars and more rely on shared fleets, Lang said.

The group warned that while it may take years to fully understand the impact of Gen Z’s attitudes, the writing is already on the wall

“Many teenagers today view vehicles as unnecessary, dangerous to the environment and at odds with their social values,” Lang said.

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