Younger buyers leaving Japanese for South Korean, American brands - Kia K900 Forum
 
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post #1 of 7 Old 03-22-2013, 10:18 AM Thread Starter
TDR
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Default 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. Check out the full press release below for more information.

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Young Car Buyers Shift Preferences from Japanese to U.S. and Korean Brands, Reports Edmunds.com

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.

Edmunds.com offers a wealth of insights into car shopping behavior and habits through its Industry Center at Industry Center.
Younger buyers leaving Japanese for South Korean, American brands
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post #2 of 7 Old 06-11-2013, 03:26 PM
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surprised this is happening I guess it's due to high cost and lack of features in the expensive japanese vehicles, unlike the korean models that are cheap and loaded with features.
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post #3 of 7 Old 07-03-2013, 01:10 PM
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I wouldn't be surprised if Kia is doing this just to build up their brand and reputation and jack up the price later on.

This is just the beginning like Honda in the early 90s'



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post #4 of 7 Old 07-03-2013, 01:12 PM
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The Koreans have a strong chance to be at the top with the germans and japanese. It will take some time but mark my word it will happen eventually. Just look at the quality of the Kia quoris and cadenza.
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post #5 of 7 Old 07-06-2013, 09:31 AM
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Kia is not cheap anymore...fully loaded Optima v4 turbo $35K vs fully loaded Accord v6 $32K....Fully loaded Cadenza $42K very close to Lexus ES and Toyota Avolon
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post #6 of 7 Old 07-16-2013, 11:55 AM
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people are just tired for overpaying for cars, they know Kia and Hyundai offers the same thing as the bigger more established brands do at a much lower cost
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post #7 of 7 Old 09-23-2013, 04:04 PM
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Quote:
Originally Posted by jerinbd445 View Post
When i probably would not always be shocked if Kia is performing this merely to build up the company in addition to standing in addition to jack the cost afterwards.
That wouldn't be a smart move for them this early on. they still need to establish their brand especially with the luxury line like the quoris coming. i could see any company doing that or having the idea planted in the back of their head but they do however need to look at the bigger picture.
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