Increase in Single-Person and Unmarried Households
Driving Demand for Economical Vehicles
As demand from women and the elderly increases in the domestic automobile market, there is a prospect that demand for easy-to-drive and practical compact and mid-sized vehicles may rise.
Im Hyun-jin, a senior researcher at the Korea Automobile Research Institute, stated this on the 12th in a report titled "Population and Social Structure Changes and the Domestic Automobile Market." According to the report, the growth rate of the number of registered vehicles per woman from 2015 to 2024 was 2.8%, which is 1.8 percentage points higher than that of men (1.0%).
Women showed a higher growth rate in the number of registered vehicles per person than men in all age groups except those in their 80s. Accordingly, the ratio of registered vehicles per person between women and men steadily increased from 32.4% in 2015 to 34.2% in 2020 and 37.3% in 2024.
Senior researcher Im analyzed, "As women become more active in society and their economic power increases, their willingness to own vehicles is expected to expand further," adding, "Demand for practical compact and mid-sized vehicles is likely to increase faster than for large vehicles."
In the case of the elderly (those in their 60s to 80s), the total number of registered vehicles increased rapidly. Over the past decade, the overall growth rate of registered vehicles in Korea was 2.3%, while those in their 60s and 70s both showed a high rate of 6.7%, and those in their 80s showed 5.5%. In contrast, the rates for those in their 20s, 30s, 40s, and 50s were 4.7%, -0.4%, 0.1%, and 2.1%, respectively.
Senior researcher Im pointed out, "Considering that the growth rate of registered vehicles per person among those in their 60s to 80s does not meet the total increase, it is analyzed that the impact of population growth is greater than an increase in purchasing tendencies."
He further analyzed, "Elderly drivers are expected to have increased demand for vehicles that are easy to drive and practical due to changes in income and physical functions," adding, "Since their participation in economic activities is relatively low, the demand for replacing vehicles with higher price ranges may be somewhat limited."
Meanwhile, as of the end of last year, the total number of registered vehicles in Korea was counted at 26.3 million, a 1.3% increase from the previous year. The growth rate of total registered vehicles has been slowing down, recorded at 27.6% in 1990, 8.0% in 2000, 3.6% in 2010, and 2.9% in 2020. Senior researcher Im predicted, "The acceleration of aging is leading to a decrease in the working-age population and a decline in potential growth rates, and in the long term, the number of registered vehicles may decrease overall."
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