At the Morgan Stanley Global Automotive Conference earlier this month, Lexus Group Vice President and General Manager Bob Carter spoke to analysts about the future of the brand, and the industry as a whole. More specifically, he spoke about what changing market conditions and consumer values will mean to the luxury industry.
Carter said he sees the so-called Generation Y as being a big force behind sales of expensive automobiles. “These young consumers are not only smart and savvy; they have more disposable income than any previous generation,” he said. “One out of three high school seniors carries a credit card, and together, teenagers and college students now control $375 Billion in spending power.”
As a new generation of young people enter the business world, they will begin to pick vehicles based on status, craftsmanship, and design, Carter says. “The Gen Ys are entering the business world and have much higher expectations about their cars than any previous generation.”
Carter said the information age, biotech, and nanotech are setting the world up for a new “Golden Era” for the auto business. He points to an American Demographics study that predicts growth in the next two decades so strong that “it will rival the growth America experienced right after World War II.”
