New Research on Gen Z and the Future of Automotive: Trends Shaping Subscriptions and Mobility

Jan 29

Written By AVVA Mobility

The automotive industry is undergoing a significant transformation as Generation Z enters the market with distinct preferences that are reshaping traditional notions of car ownership and mobility. Recent studies, including the 2025 Deloitte Global Automotive Consumer Study, reveal a notable shift in how this generation approaches transportation, with implications that will reverberate throughout the automotive industry for years to come.

Shifting Preferences in Vehicle Ownership

While traditional car ownership remains important for many consumers, there's a growing trend towards other mobility solutions, particularly among younger generations. The 2025 Deloitte study found that by 2035, private vehicle usage without ownership is estimated to comprise 38% of the US market(1). This shift is driven by several factors:

Financial Flexibility: With rising costs of living, younger consumers are seeking more economical alternatives to traditional car ownership.
Environmental Consciousness: Gen Z places a high value on sustainability, viewing traditional car ownership as potentially wasteful and environmentally harmful.
Tech-First Mindset: This generation expects seamless, technology-enabled solutions for all aspects of their lives, including transportation.

The Rise of Mobility-as-a-Service (MaaS)

The MaaS market is experiencing rapid growth, with a global valuation of $380.2 billion in 2023 and an estimated compound annual growth rate (CAGR) of 15.6% from 2025 to 203019. This trend is particularly pronounced among younger consumers:

44% of US consumers aged 18-34 are somewhat willing, willing, or very willing to give up vehicle ownership in favor of MaaS solutions(1).
66% of Gen Z adults in India are interested in giving up vehicle ownership for subscription models(1).

Subscription Models: Meeting Gen Z Where They Are

As Gen Z's preferences evolve, subscription-based mobility models are emerging as a compelling solution. The global car subscription market is projected to grow from $5.41 billion in 2024 to $23.81 billion by 2033, at a CAGR of 15.98% (1,2).

Benefits of models for Gen Z:

Financial Flexibility: Pay-as-you-go models without the burden of loans or depreciation.
Sustainability: Access to newer, more fuel-efficient vehicles, including EVs.
Tech Integration: Connected services and seamless digital experiences.
Variety: The ability to switch between vehicle types based on changing needs.

The AVVA Mobility Solution

AVVA Mobility has developed a platform that directly addresses these shifting preferences. Our end-to-end subscription platform enables OEMs, dealers, and mobility providers to quickly launch subscription services, expanding their customer base without overhauling existing infrastructure.

Key features of the AVVA Mobility solution include:

Comprehensive Offering: An all-in-one solution covering everything from digital shopping experiences to fleet management and customer engagement.
Innovative Origination Process: A proprietary system that understands who can afford and who will pay, expanding access to mobility for underserved markets.
Flexible Subscription Length: AVVA has identified the optimal subscription duration of four years, balancing consumer flexibility with business sustainability.
Gamification for Engagement: AVVA's platform incorporates gamification elements, with 100% of users earning coins and 77% of members earning additional points, driving loyalty and positive behavior.
Efficient Fleet Management: The platform optimizes vehicle utilization and maintenance, reducing costs and improving sustainability.

Drive AVVA, the consumer-facing arm of AVVA Mobility, demonstrates the viability and demand for this model. By achieving profitability in just two years, we’ve proven that subscription-based mobility is not just a trend, but a profitable model that expands customer bases and fosters long-term loyalty.

Implications for OEMs and Providers

To remain competitive in this changing landscape, OEMs, dealers, captives, and mobility providers must adapt their strategies:

Embrace Subscription Models: Develop flexible ownership alternatives that cater to Gen Z's desire for convenience and reduced commitment.
Focus on User Experience: Create comprehensive mobility solutions that integrate seamlessly with Gen Z's digital lives.
Prioritize Sustainability: Showcase commitment to reducing environmental impact through eco-friendly vehicle options and efficient utilization strategies.
Leverage Data and Connectivity: Utilize telematics and data to offer personalized services and improve the overall experience.
Offer Flexibility: Provide options that allow users to easily switch between vehicle types based on their changing needs.

Looking Ahead

As Gen Z continues to shape the future of mobility, the automotive industry must evolve to meet their unique needs and preferences. Subscription-based models, like those enabled by AVVA Mobility, offer a path forward that aligns with Gen Z's values while creating new opportunities for growth and innovation in the automotive sector.

The future of mobility is not about selling cars; it's about providing access to mobility when and how consumers need it. By embracing new models of vehicle access and focusing on user-centric, flexible solutions, the automotive industry can not only survive this shift but thrive in the new landscape of mobility.

1 Deloitte, "2025 Global Automotive Consumer Study," 2025

2 GoodCarBadCar, "The Ongoing Impact of Mobility As A Service On The Automotive Market," 2024

AVVA Mobility https://AVVAMobility.com

New Research on Gen Z and the Future of Automotive: Trends Shaping Subscriptions and Mobility

Shifting Preferences in Vehicle Ownership

Financial Flexibility: With rising costs of living, younger consumers are seeking more economical alternatives to traditional car ownership.

Environmental Consciousness: Gen Z places a high value on sustainability, viewing traditional car ownership as potentially wasteful and environmentally harmful.

Tech-First Mindset: This generation expects seamless, technology-enabled solutions for all aspects of their lives, including transportation.

The Rise of Mobility-as-a-Service (MaaS)

The MaaS market is experiencing rapid growth, with a global valuation of $380.2 billion in 2023 and an estimated compound annual growth rate (CAGR) of 15.6% from 2025 to 203019. This trend is particularly pronounced among younger consumers:

44% of US consumers aged 18-34 are somewhat willing, willing, or very willing to give up vehicle ownership in favor of MaaS solutions(1).

66% of Gen Z adults in India are interested in giving up vehicle ownership for subscription models(1).

Subscription Models: Meeting Gen Z Where They Are

As Gen Z's preferences evolve, subscription-based mobility models are emerging as a compelling solution. The global car subscription market is projected to grow from $5.41 billion in 2024 to $23.81 billion by 2033, at a CAGR of 15.98% (1,2).

Benefits of models for Gen Z:

Financial Flexibility: Pay-as-you-go models without the burden of loans or depreciation.

Sustainability: Access to newer, more fuel-efficient vehicles, including EVs.

Tech Integration: Connected services and seamless digital experiences.

Variety: The ability to switch between vehicle types based on changing needs.

The AVVA Mobility Solution

AVVA Mobility has developed a platform that directly addresses these shifting preferences. Our end-to-end subscription platform enables OEMs, dealers, and mobility providers to quickly launch subscription services, expanding their customer base without overhauling existing infrastructure.

Key features of the AVVA Mobility solution include:

Comprehensive Offering: An all-in-one solution covering everything from digital shopping experiences to fleet management and customer engagement.

Innovative Origination Process: A proprietary system that understands who can afford and who will pay, expanding access to mobility for underserved markets.

Flexible Subscription Length: AVVA has identified the optimal subscription duration of four years, balancing consumer flexibility with business sustainability.

Gamification for Engagement: AVVA's platform incorporates gamification elements, with 100% of users earning coins and 77% of members earning additional points, driving loyalty and positive behavior.

Efficient Fleet Management: The platform optimizes vehicle utilization and maintenance, reducing costs and improving sustainability.

Implications for OEMs and Providers

To remain competitive in this changing landscape, OEMs, dealers, captives, and mobility providers must adapt their strategies:

Embrace Subscription Models: Develop flexible ownership alternatives that cater to Gen Z's desire for convenience and reduced commitment.

Focus on User Experience: Create comprehensive mobility solutions that integrate seamlessly with Gen Z's digital lives.

Prioritize Sustainability: Showcase commitment to reducing environmental impact through eco-friendly vehicle options and efficient utilization strategies.

Leverage Data and Connectivity: Utilize telematics and data to offer personalized services and improve the overall experience.

Offer Flexibility: Provide options that allow users to easily switch between vehicle types based on their changing needs.

Looking Ahead

The Economics of Car Subscriptions: A Win-Win for Consumers and OEMs

Driving Sustainability Forward: How AVVA Mobility’s Subscription Model Paves the Way for Sustainable Mobility