Suzuki North America

Suzuki: Understanding Gen Z's Automotive Preferences

The Challenge: Bridging the Generational Gap in Automotive Design

Suzuki, a well-established corporation with an aging executive team, recognized a blind spot in understanding the preferences of the next generation of automotive consumers. To address this, Suzuki North America engaged with Berkeley Innovation to conduct in-depth research on Gen Z preferences, led by Soumya Mandal, the Manager of Technology Research.

Research Approach: Capturing Gen Z Insights

Our team conducted extensive on-campus and off-campus interviews around UC Berkeley, Stanford, and local high schools. The goal was to understand how young people prefer to get around, what features they prioritize in cars, and their overall mobility preferences.

Key Research Insights

Rideshare Demographics and Preferences:

• Uber Users: About 65% of Uber users in the U.S. are aged 16-34, with urbanites being the predominant user base. This group values convenience, affordability, and technological integration (GWI, 2024).
• Lyft Users: Similarly, 49% of Lyft’s users are between 18 and 34 years old, with a significant portion being students or young professionals. These users also prefer features that enhance convenience and safety during their rides (The Rideshare Guy, 2024).

Car Ownership Trends:

• Gen Z: While car ownership among Gen Z is growing, their preferences lean towards functionality and technological features over traditional performance metrics. Many still rely on rideshare services like Uber and Lyft for flexibility and cost savings.
• Boomers and Millennials: Car ownership among Boomers remains high, but Millennials show a declining trend in ownership, increasingly opting for rideshare services and public transportation (Second Measure, 2024).

Gen Z Preferences for Cars:

• Driving Preferences: Gen Z wants cars that are technologically advanced with seamless smartphone integration, advanced safety features, and eco-friendly options like electric vehicles. They prefer cars that are easy to park, affordable to maintain, and equipped with modern amenities like Wi-Fi and touchscreens.

• Rideshare Experience: For Uber and Lyft rides, Gen Z values clean and safe vehicles with amenities such as USB charging ports, comfortable seating, and in-car entertainment options. Real-time tracking and transparent pricing are also crucial.

Visual Design Prototypes:

• Low-Fidelity Interior Sketches: Our initial designs focused on incorporating these preferences, showcasing interiors with ample tech integration, user-friendly interfaces, and sustainable materials.

Lessons Learned

Understanding Gen Z Preferences

User-Centric Research Methods:

Conducting extensive on-campus and off-campus interviews at UC Berkeley, Stanford, and local high schools provided deep insights into how Gen Z prefers to get around and what features they value in cars. This highlighted the importance of involving target users directly in the research process to gather authentic feedback.

Importance of Technology Integration:

Gen Z places a high value on technology integration in vehicles. Features like seamless smartphone connectivity, advanced safety systems, and eco-friendly options such as electric vehicles are top priorities. This understanding underscores the necessity for automotive companies to focus on tech-forward features to appeal to younger consumers.

Design Thinking and Prototyping:

Utilizing design thinking principles and creating low-fidelity sketches allowed us to visualize and iterate on interior designs and car features rapidly. This iterative process is crucial for refining ideas based on user feedback and ensuring the final design meets user expectations.

Rideshare vs. Car Ownership Preferences:

The research revealed a dual preference among Gen Z: while many appreciate the flexibility and cost-effectiveness of ridesharing services like Uber and Lyft, there is still a significant interest in car ownership, particularly for models that offer technological sophistication and environmental benefits.

Navigating Corporate Blind Spots:

Collaborating with an established company like Suzuki, which has an aging executive team, highlighted the challenges and opportunities of bridging generational gaps. It demonstrated the value of fresh perspectives and the need for legacy companies to stay attuned to the evolving preferences of new consumer demographics.

Conclusion: Designing for the Future

Our research highlighted the evolving preferences of Gen Z, emphasizing the need for modern, tech-forward, and environmentally conscious vehicle designs. By addressing these insights, Suzuki can better cater to the next generation of automotive consumers, ensuring their offerings remain relevant and appealing in a rapidly changing market.

This case study showcases the importance of understanding and adapting to generational shifts in consumer preferences, particularly in the automotive industry.