Millennials Switch from Small Cars to Small Crossovers

Millennials those born between the early 1980s and early 2000s are trading up from the small cars that got them through college and first jobs into more versatile small SUV/crossover vehicles, USA Today reports.

The newspaper cites a study by Maritz Research Inc. of 122,000 Millennial-age Americans, a group also labeled Generation Y. USA Today notes that Gen Y consumers now account for 26% of all new-car sales compared with 24% for Baby Boomers, the group born between 1946 and 1964.

Maritz says that from 2008 to 2013, the percentage of Millennials expressing interest buying in a small car fell from 13.2% to 9.7%. Over the same period, their preference for a small crossover grew from 6.4% to 7.5%.

USA Today points out that carmakers worldwide are responding to the trend with a bevvy of new compact SUV/crossovers, including luxury to catch Millennials as they move into pricier vehicles.

Gen Yers are "still looking for great fuel economy," says Amy Marentic, who heads global car and crossover marketing for Ford Motor Co., "but they want something that will fit more of their stuff."