Young People Who Just Rent Cars... Older Drivers "Still in the Game" Buying New Ones

The mood in the car market these days is diverging quite a bit by generation.

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Last year, the share of new car registrations by people in their 20s and 30s fell to the lowest level in the past 10 years. In contrast, registrations by people in their 60s and 70s increased noticeably.

People in their 20s and 30s are moving away from new cars

According to Kaizuyu Data Research Institute,

the number of new car registrations by people in their 20s last year was 61,962, accounting for only 5.6% of all new passenger cars (1,102,051 units).

Their share, which was 8.8% in 2016, has kept falling: 8.0% in 2021 → 7.8% in 2022 → 7.2% in 2023 → 6.7% in 2024 → and then down to 5.6% last year. This is the lowest level since the data began to be compiled.

The trend is similar for people in their 30s.

The number of registrations last year was 209,749, with a market share of 19.0%.

The share, which was 25.9% in 2016, dropped to 19.0% over 10 years, a decline of 6.9 percentage points. This is also the lowest level in a decade.

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Why is this happening?

● Car prices keep rising

● A shift in perception toward "Do I really need a car?"

● The spread of car-sharing services

In particular, people in their 20s increasingly do not see cars as a necessity, and more of them are opting for car-sharing apps instead of buying a vehicle.

"Still in the game": older drivers opening their wallets

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People in their 60s and 70s are actually buying more new cars. In contrast to younger generations, new car purchases among older age groups are on the rise.

People in their 60s: 204,294 units, market share 18.5%

People in their 70s: 50,861 units, market share 4.6%

For those in their 60s, the share has nearly doubled, from 9.6% in 2016 to 18.5% last year.

For those in their 70s as well, the share has steadily risen from 2.8% in 2016 to the mid-4% range. For both age groups, this is the highest level in 10 years.

Although older drivers are being encouraged to voluntarily return their licenses, actual demand for cars is not decreasing.

The main reasons cited are population aging and an increase in people who continue economic activity at older ages. Many of them still need a car for work or to get around.