Despite COVID Impact, Sales Increase Among 60+... Auto Industry Targets "Opal Generation"

[Asia Economy Reporter Su-yeon Woo] The middle-aged and older generation with economic power who do not hesitate to spend, known as the 'OPAL generation,' is emerging as a new consumer group in the domestic automobile market. Until last year, the target consumer group for the automobile industry was the 'Millennial generation,' but after the COVID-19 pandemic, the new middle-aged generation with more stable assets than the younger generation is gaining attention.

The 'OPAL (Old People with Active Life) generation' is a newly coined term derived from the initials of 'Old People with Active Life,' referring to the 50s and 60s age group that is emerging as a new consumer segment. As baby boomers, they not only make up a large proportion of the total population but also have solid economic power, having led the period of economic growth. They pursue joy in life through new jobs and hobbies regardless of age, and exercise strong purchasing power by spending generously not only on themselves but also on their children and grandchildren.

Car owners aged 60 and over rank first in new car registration growth rate by age this year

According to Kaizyu statistics on the 20th, among domestic new car registrations (887,034 units) from January to August this year, those aged 60 and over accounted for 164,430 units, an 11.5% increase compared to the previous year, recording the highest growth rate. During the same period, the age group with the largest share in the domestic automobile market was the 50s at 28%, and the 50s and 60s combined accounted for 47%, surpassing the 30s and 40s (45%).

In particular, as COVID-19 has prolonged, consumers aged 60 and over, who have relatively stable asset sizes compared to the younger generation with declining purchasing power, have maintained the highest monthly growth rate in sales by age from May to August this year. Even in July and August, when the effect of policy stimulus began to diminish due to the reduction in individual consumption tax cuts, automobile consumption by those aged 60 and over was the only one to show an increasing trend.

Hyundai Grandeur

By vehicle type, the most preferred domestic car among those in their 50s was the Hyundai Grandeur, followed by the Avante and Sorento. Among imported cars, the Mercedes-Benz E-Class ranked first in preference, with the BMW 5 Series and Volkswagen Tiguan also chosen by consumers in their 50s. Those in their 60s also most frequently chose the Grandeur among domestic cars and the Mercedes-Benz E-Class among imported cars, with the Sonata, Santa Fe, BMW 5 Series, and Lexus ES 300h also making the list of best-selling cars.

Mercedes-Benz 'The New E-Class'

Automobile industry strengthens marketing targeting the purchasing-powerful 'OPAL generation'

With the potential of the 'OPAL generation' confirmed, the automobile industry has recently been strengthening marketing strategies targeting them. The Hyundai Avante, released in April, produced a TV commercial targeting active seniors with the slogan 'The Second Youth Car.' It was considered a fresh marketing strategy in that the Avante, previously recognized as the first car for people in their 20s and 30s, began to focus on the practical consumption preferences of those in their 50s and 60s.

In fact, looking at domestic new car registrations for five months after the release of the new Avante in April this year, those in their 50s accounted for the largest share at 26% of total sales (34,901 units). During the same period, the combined share of those in their 50s and 60s for the new Avante reached 39%, which is higher than the 30s and 40s at 37%.

New Avante 'The Second Youth Car' Advertisement

Additionally, Kia Motors introduced the 'Golden Age Promotion' in the first half of this year to support automobile purchases by those aged 60 and over. Consumers aged 60 or older who purchase subcompact or smaller vehicles such as the Morning, Ray, K3, and Niro receive a safe driving support fund of 200,000 KRW, and those who use the ultra-long-term installment program of 100 months are provided with a comprehensive health checkup voucher worth approximately 800,000 KRW. This marketing reflects the characteristics of the OPAL generation, who value practical consumption and health.

A Kia Motors official said, "As the proportion of active seniors purchasing compact cars is increasing recently, we planned promotions tailored to this trend," adding, "We are putting a lot of thought into providing benefits that reduce the burden on senior customers and help improve their lives."