Gen Z and sustainable mobility: Incentives will work better than appeals

The results reveal a more complex picture than common stereotypes suggest. Zeroing in on Gen Z, sustainability is recognized as a core value, but it’s not the main motivator  underpinning this generation’s mobility choices. What actually guides their decisions are practical, functional factors: cost, reliability, ease of use, and safety. In other words, Gen Z thinks in ideals but moves with an eye to efficiency. Not because they don’t care about the environment, but because they live fast-paced lives in an economic climate where every choice is constrained by tight budgets and the ability to move easily is non-negotiable.

Even when young people are open to adopting more sustainable solutions like electric, plug-in, or shared vehicles, they only choose them if they’re accessible, affordable, and user-friendly. The geography of behavior confirms this. In China, where sustainability is not a major factor in choosing a car (unlike in Europe, where it matters), the adoption of electric and plug-in vehicles is higher. Why? Because massive government incentives have brought down the cost of buying and using these kinds of cars, making them an attractive option.

Specifically, in China, 43.7% of Gen Z use low or zero-emission cars (22.8% plug-in hybrids and 20.9% fully electric). These numbers are far above what we see in Europe, where even with purchase incentives, market prices remain high, partly because local manufacturers still focus on premium models. In France, only 20.7% of Gen Z drive electric or plug-in cars (11.2% electric and 9.5% plug-in); in Germany, it’s 23.8% (20.3% electric and 3.5% plug-in); and in the UK, 35.3% (23.9% electric and 11.4% plug-in).

India has taken a different approach than neighboring China, one that has proven equally effective: The focus is on low-cost models, with public incentives and aggressive commercial offerings. The result? In India’s major cities, 28% of Gen Z drive a fully electric car and 7.8% use a plug-in.

One common trait across all regions analyzed in the study is the continued importance of public transport for urban travel. But there are notable differences. In Europe’s major cities, key concerns include personal safety, especially at night, and poor integration between transit lines and modes. In East Asia’s large cities, by contrast, public transport is seen as efficient and fast, thanks in part to modern urban planning incorporating the latest technologies and infrastructure. India still lags behind but has made substantial strides in recent years to develop sustainable urban transit networks. Here, Gen Z sees public transportation as sustainable, but that’s not why they use it. Instead, their reasons are that it’s less affected by traffic and more reliable in terms of travel times.

For people who can afford it, however, the car is still their first choice. In urban settings, the marginal cost of using a car is often lower than the price of public transport for a single trip, especially for low-emission vehicles (electric and plug-in), which enjoy perks like free access to restricted traffic zones and extensive free parking. Once again, efficiency, not sustainability, is what impels decisions.

Car sharing finds a selective audience in Gen Z. In Europe, Gen Z is more inclined than Millennials to adopt this practice (with the exception of Germany), but only when the service is affordable and vehicles are widely available. The two main barriers reported by users are the price and the uncertainty of vehicle availability. Without broad, affordable access, even the generation most familiar with the sharing economy will opt for more reliable alternatives.

Gen Z isn’t chasing utopia. What these young people want is a practical improvement to the status quo. In fact, 58% of respondents believe innovation should focus on enhancing existing infrastructure rather than developing radical new solutions. Their ideal is an urban mobility system that’s affordable, more integrated, safe, and easy to use.

The message is clear: To achieve truly sustainable urban mobility, values alone won’t cut it as the sole motivators. We need to address the actual conditions that shape behavior. Gen Z cares about the environment, but they won’t sacrifice convenience, safety, or cost-effectiveness. To convince them to choose more sustainable options, those options must be made more accessible, beneficial, and simpler. Sustainability, on its own, is not enough: It has to become a smart choice, so it can also be an ethical one.