The federal government is demanding stronger vehicle fuel efficiency and automakers have certainly been doling out the investment to pay for stronger gas mileage and alternative-powertrain technology.

Granted, there is still some debate as to whether these alternative-fuel vehicles will truly catch on, but analysis from Deloitte suggests that younger car buyers may be the ones to end gasoline’s dominance.

With Deloitte’s recent study finding that Generation Y (ages 19 to 31) respondents gravitate to hybrids, Craig Giffi — who is vice chairman and automotive practice leader — believes Gen Y will be the “generation that leads us away from traditional gasoline-powered vehicles.”

What’s more, Deloitte stressed this group has some considerable influence, noting that a quarter of  vehicle sales this year will be from Gen Y. And over the next decade, 40 percent are likey to be from this group.

Sharing Gen Y’s preferences, the survey said that 59 percent of Gen Y would rather have an electrified vehicle than any other type of vehicle. They are particular fond of hybrid gasoline-electric models, as 57 percent chose this type of vehicle compared to the 37 percent who prefer gas-only vehicles and the 2 percent favoring pure-battery electrics.

So why the big rush to hybrids for this young crowd?

The study indicates that fuel efficiency is the biggest draw, as 89 percent of this generation is looking for a more fuel-efficient ride. They are particularly concerned with fuel economy when gas prices exceed $2.75/gallon, which is median of the “fair” prices listed by Gen Y.

Almost half (49 percent) said that they would shell out $300 more for each mile per gallon of fuel-economy improvement that a hybrid gets over a traditional model. Comparatively, the estimated price premium of a hybrid versus a traditional model is $350 per mpg improvement, Deloitte noted.

“Gen Y consumers also view hybrid technology as proven and reliable," Giffi noted. “Almost six in 10 Gen Y respondents prefer a hybrid over any other type of vehicle, while a mere 2 in 100 prefer a pure battery electric vehicle – demonstrating that Gen Y is familiar and comfortable with hybrid technology, but not so much with battery-only technology.”

Gen Y consumers still demand the convenience one gets from gas-powered models. There are much more likely to go for powertrains where plug-in recharging isn’t a necessity. Though they favor hybrids, they are still almost twice as likely to go for a non-plug-in hybrid compared to a plug-in hybrid

Importance of In-Dash Technology

Moving along, Deloitte also delved into the emphasis this generation puts on in-dash technology, noting that 59 percent calling it the most important part of a vehicle’s interior. In fact, 73 percent want touch-screen interfaces in their vehicle.

Meanwhile, 72 percent tout smartphone applications as being “highly desirable,” and more than three-quarters (77 percent) want to be able to continually add more accessories and upgrades to the vehicle.

“Gen Y consumers prefer automobiles that are an extension of their social-media and digital lifestyles,” stated Joe Vitale, global automotive sector leader for Deloitte Touche Tohmatsu Limited. “Based on the survey, we found that auto manufacturers may have an opportunity to capitalize on Gen Y’s connected lifestyle by developing innovative and low-cost personalization options for this powerful consumer segment.”

He added: “Gen Y consumers clearly view their automobiles as more than just a way to get from point A to point B. They see them as a way to stay connected around the clock, and, they’re willing to pay it.”

In fact, they typically would be willing to put more than $3,000 to purchase connectivity-related hardware.

Safety

Next up, Deloitte examined Gen Y’s balance of increased connectivity versus safety, noting that these drivers recognize the inherent safety risk from all these communication features.

However, one solution offered is having cars with upgraded safety features to make up for all the potential gadget-related distractions.

“Gen Y consumers are willing to pay for technology that can help them better manage all the distractions created by connectivity,” Vitale shared.

“On average, they will shell out approximately $2,000 for a bundle of safety features like collision-avoidance systems, blind spot detection and sleep alert systems,” he continued. “In fact, Gen Y respondents graded safety bundles as their second most important priority — right behind technology bundles — when ranking their desire to buy additional vehicle features.”