Urban Vehicles Get Connected and Accessorized

This week the 2009 Nissan Cube will hit the showroom floors at dealers across the United States. The Cube is just one example of the expanding urban vehicle segment, which has become a unique subdivision of the compact market because its buyers represent not just an income level or age group, but those who have a type of lifestyle.

A target market for this growing segment is the 16- to 29-year-old, urban living—or at least urban-life admiring— tech savvy, expressive, environmentally conscious new car buyers. This group often is defined as 'the generation that was born plugged in.'

What do these buyers expect and what are the OEMs delivering in this rather new vehicle segment? Connectivity.

Interestingly, Nissan labels its Cube as a mobile device. Perhaps it’s because of the findings from a recent study of 16 to 29 year olds asking ‘What’s cool?’ To Nissan’s surprise, cars ranked sixth in this survey. iPhones, game systems, iPods, footwear and computers all came ahead of new cars, hence the moniker mobile device for the Nissan Cube. Perhaps Nissan at least is hoping to hit upon some of the expectations of its target market.

Connected
The most common and most sought-after quality in this market segment is connectivity, in various mediums. Sure, getting around town in a car that is accessorized to the driver’s specifications is important, and owning a vehicle that is affordable and leaves a small carbon footprint ranks high on the list for the urban vehicle driver, but social networking and entertainment seem to be paramount. Being connected hands-free via Bluetooth, hooking up the iPod to premium audio, and staying informed of the latest news or music with High-Definition (HD) or satellite radio are all prerequisites for this segment.

In years past, Bluetooth connectivity was not common in vehicles under the $20,000 price range. However, Bluetooth availability in the United States has grown from 11 percent in 2006 to 60 percent in 2009 for this price range, according to the iSuppli Technology Availability Scorecard. iPod integration, auxiliary input and USB availability also have made similar increases.

Accessorized
OEM options aside, the urban segment vehicles are often designed to accept numerous different aftermarket accessories, whether from the dealer or from other part suppliers. These accessories can range from body kits and lighting to high-end audio and navigation. Often, the only limit to the customization of these cars is their owners’ creativity. Urban vehicles are all about expressing personality.

Therefore, the OEMs have gotten in on this revenue opportunity by offering a long list of OEM-approved dealer-installed accessories. For example, the Kia Soul has more than 50 accessories to choose from, and the Nissan Cube has over 40. While most of these accessories revolve around design elements and lighting, some offer technological upgrades. For example, DVD navigation, rear park assist and rain–sensing wipers are available for the Mini Cooper.

A Portable Navigation Device (PND) by Garmin is available for the Nissan Cube, and the Scion xB’s optional DVD navigation system includes voice guidance, day and night screen modes rear seat entertainment headrests.
It also allows users to customize the vehicle icon on the navigation screen, from an arrow to an icon of the xB that can be changed in every xB exterior color, providing even more customization.

Concluded
Urban vehicles offer extended living space for its drivers. With dozens of accessories and options, these vehicles are transformed into more than just a means of transportation. Also with a price tag starting near $12,000 for some, they become not only desirable but affordable.

Connectivity remains at the top of the wish list, which is no surprise looking back the survey mentioned earlier. Premium and branded audio will also remain important and will continue to increase in other urban vehicles. Look for Wi-Fi to become an option soon, since most buyers are 'plugged in,' it would seem to be the next logical step. Perhaps Nissan is on the mark, labeling the Cube a mobile device.