Why Are People in Their 20s Not Buying New Cars?..."Belief That 'Sharing' Is Enough"

2030s' New Car Registration Share Hits Decade Low
In Sharp Contrast, 60s and 70s Age Groups Double Their Share in 10 Years

This year, the share of new car registrations among people in their 20s and 30s fell to its lowest level in a decade during the first half of the year. In contrast, the registration share among those in their 60s and 70s increased significantly. This contrasting trend is interpreted as a result of continued economic activity among people in their 60s and 70s.

According to the Carisyou Data Research Institute on July 8, the number of new passenger cars registered by individuals in their 20s during the first half of this year totaled 29,066. This accounts for only 5.7% of the total number of new passenger car registrations (511,848 units). The share of new car registrations among people in their 20s has been steadily declining over the past 10 years. In 2016, it was 8.8%, but it dropped to 7.8% in 2022 and 6.7% last year.

Parked new cars. Photo is not related to any specific expression in the article. Photo by Yonhap News.

If this trend continues, the share of new car registrations among people in their 20s is expected to reach its lowest level in 10 years this year.

The share of new car registrations among people in their 30s also fell by 6.4 percentage points in 10 years, from 25.9% in 2016. There is also a possibility that the share for people in their 30s will fall below 20% for the first time this year.

In contrast, the number and share of new passenger car registrations among people in their 60s and 70s have been increasing every year. In the first half of this year, the number of new car registrations among people in their 60s and 70s was 92,123 and 23,010, respectively. Their shares among all age groups were calculated at 18.0% and 4.5%, respectively.

The share of new car registrations among people in their 60s was only 9.6% in 2016, but it nearly doubled in the first half of this year. During the same period, the share among people in their 70s also rose from 2.8% to the mid-4% range.

Experts cited the spread of the sharing culture as the reason for the low rate of new car registrations among younger generations, and the need for mobility rights as the reason for the increase among older generations. Professor Kim Pilsoo of Daelim University said, "Among the reasons for the decline in new car purchases by people in their 20s and 30s are not only the economic downturn but also the growing perception that there is no need to own a car due to the spread of the sharing culture. For people in their 60s and 70s, as many are entering the workforce recently, there is a need for cars to secure mobility rights."