A combination of rising fuel costs and environmental concerns are prompting Gen Z and Millennial consumers to consider plug-in hybrid electric vehicles (PHEVs) as their next vehicle purchase, a new study by Volvo Car Canada has found.
According to the study, which forms part of Volvo’s 2024 Mobility Trend Report, while nine in ten (91%) of Canadian vehicle owners still rely on gas or diesel-powered vehicles, 51% of Gen Z respondents and 54% of Millennials (compared to 44% of Canadians in general) are now likely to choose an electrified option, such as a PHEV.
Lower fuel expenses
When asked about the factors behind this positive shift in interest, three quarters (75%) of Canadians said that they believed driving a PHEV will help lower fuel expenses, while just under two thirds (64%) view reduced environmental impact as a motivating factor for selecting a more sustainable transport option.
In addition, 30% of Canadians are drawn to the ‘flexibility’ of a PHEV, the study found, as they feature an electric battery with the backup of a gas engine.
Seeking transparency
“We’re constantly trying to meet Canadians where they’re at and provide product offerings that best suit their lifestyle,” commented Matt Girgis, managing director of Volvo Car Canada. “We know Gen Z and Millennials look for transparency with brands and we’re happy we can offer a program that helps build trust.”
While Gen Z and Millennial consumers are ‘eager’ to make their next purchase an EV, they’re also clear on how much they are willing to spend, Volvo’s study noted.
While older generations such as Boomers are accustomed to and prefer negotiating vehicle cost (44%), around half (49%) of Gen Z and Millennial consumers prefer fixed prices over traditional negotiation.
“One of the biggest barriers for Canadians when considering an electric vehicle is concern over range and battery life,” added Girgis.
The findings are taken from a survey conducted by Volvo Car Canada from 2 October to 4 October , among a representative sample of 1,525 online Canadians who are members of the Angus Reid Forum. Read more here.
