The Future of Gen Z and EVs
For years, automakers have followed the same formula: build expensive, high-tech EVs, push them as premium products, and assume prices will trickle down as technology scales. It worked for Tesla—so why wouldn’t it work for everyone else?
Because the next generation of buyers isn’t waiting for luxury to become affordable. They’re actively redefining what mobility looks like.
While the industry chases six-figure electric trucks and sedans, a completely different trend is unfolding: the rise of compact, cost-efficient, and culturally relevant vehicles. The rapid adoption of Kei trucks—a category of Japanese mini-trucks never designed for the U.S. market—is a flashing warning light that the traditional automotive industry isn’t paying attention to.
This isn’t just about Kei trucks. It’s about what they represent: an alternative to the EV status quo.
If automakers continue to ignore this shift, they won’t just lose market share. They’ll lose an entire generation of buyers.
The Numbers Don’t Lie—Consumers Are Moving First
It’s easy to dismiss Kei trucks as a niche trend. The data suggests otherwise:
Kei truck imports to the U.S. have surged 851% in the past decade, reaching 7,594 units in 2023—a massive increase from just 797 a decade earlier.
The average price of a used Kei truck is $4,500, making them one of the most affordable vehicles on the market.
Consumers are choosing to import these vehicles instead of buying used U.S. cars, despite the extra effort required to do so.
Why does this matter? Because it proves that the next generation of buyers isn’t following the paths that automakers expect. Instead of waiting for affordable EVs, they’re creating their own alternative solutions.
If an under-the-radar import market can see this kind of demand, what happens when automakers finally deliver a compact EV that actually meets this need?
The EV Market’s Major Miscalculation
Legacy automakers are still locked into a luxury-first mindset. They see Gen Z as future buyers of today’s premium EVs, assuming that affordability will eventually follow.
But here’s the problem: Gen Z isn’t waiting.
By the time traditional automakers pivot, the market will already belong to those who moved first. The brands that succeed won’t be the ones making high-end EVs “slightly cheaper”—they’ll be the ones who understand that the future of mobility is about agility, affordability, and adaptability.
This is where EV startups and smart legacy brands have an opening. While traditional players double down on large-format, high-margin EVs, there’s an entire category of untapped demand waiting to be served.
The Infrastructure Question—and Why It’s Not an Excuse
The biggest argument against compact EVs? Infrastructure isn’t ready.
While that’s partially true, it’s also misleading. Here’s why:
85% of current EV owners live in single-family homes, where home charging is an option. The market has barely tapped into urban dwellers, who are less likely to own cars at all—but more likely to embrace compact, micro-mobility solutions.
Urban zoning and transportation policies are already shifting toward pedestrian-friendly, micro-mobility-focused cities. The demand for smaller, more efficient vehicles will only increase.
Charging infrastructure is expanding, but affordability remains the primary barrier. Even with federal EV incentives, the majority of Gen Z buyers still can’t afford today’s options.
The reality? The infrastructure gap is a challenge, but the pricing gap is the real problem. Solve affordability, and the infrastructure will follow.
What Happens Next—and Who Wins
The next three years will determine who wins the future of mobility. Some key predictions:
Legacy automakers will be forced to adapt, but they’ll do so reactively, not proactively.
EV startups that recognize the demand for compact, lower-cost vehicles will take an early lead.
Cities will begin integrating micro-mobility policies, opening doors for smaller EVs and alternative vehicle formats.
Companies that recognize these shifts early will define the market. The ones that hesitate will be playing catch-up for the next decade.
The Bottom Line: Act Now or Fall Behind
For automakers, investors, and policymakers, the next move is clear:
Automakers need to stop over-prioritizing high-end EVs and invest in compact, affordable models before startups fill the gap.
Investors should be looking beyond traditional EV plays. The next big opportunity isn’t in another $80,000 electric SUV—it’s in accessible, scalable, and globally relevant transportation.
Policymakers need to get ahead of micro-mobility. Instead of resisting change, cities should be integrating infrastructure and incentives to support compact EV growth.
The rise of Kei trucks in the U.S. isn’t about nostalgia or aesthetics. It’s about what happens when consumers move faster than the industry that’s supposed to serve them.
The companies that recognize this early will be the ones shaping the future of mobility—not the ones struggling to keep up.
For a deeper dive into this shift, including market data, investment risks, and industry predictions, download the full report