Vehicles are often regarded as symbols of status and luxury in Sri Lanka. It wouldn’t be inaccurate to suggest that many Sri Lankans aspire to own a suitable four-wheeler and one need not necessarily be a car enthusiast to harbour such a dream.
In this context, there is an ongoing debate where some argue that Sri Lanka already has a sufficient number of vehicles on the road, while others contend that the current number of vehicles is relatively low compared to similar developing countries and even developed nations.
This week’s ‘Market Mine’ will examine the statistics on vehicle ownership in Sri Lanka.
According to the World Bank, Sri Lanka’s population was 22.16 million in 2021 while the total number of vehicles registered that year was 8.25 million. The average was one vehicle per approximately 14 people. In terms of cars, only one car each was available for 25 people.
As of 2021, India’s population was approximately 1.39 billion, with around 285 million registered vehicles. This equates to roughly one vehicle for every five people. In terms of cars, there was approximately one car for every 20 individuals.
In 2020, Vietnam had a population of around 97 million, with approximately 58 million registered vehicles. Accordingly, there was approximately one vehicle for every two people and the ratio was roughly one car for every five individuals.
As of 2021, the population of the Philippines was about 111 million, with approximately 14 million registered vehicles. This translates to roughly one vehicle for every eight people and approximately one car for every 14 individuals.
In 2020, Malaysia had a population of around 32 million, with approximately 32 million registered vehicles. This implies there was approximately one vehicle for every individual. When considering cars, the ratio was roughly one car for every two individuals.
As of 2021, Singapore’s population was approximately 5.7 million, with around one million registered vehicles. This equates to roughly one vehicle for every six people and approximately one car for every five individuals.
In 2021, Indonesia had a population of around 276 million, with approximately 143 million registered vehicles. This indicates that there was approximately one vehicle for every two individuals while the ratio was roughly one car for every four individuals.
As of 2021, Pakistan’s population was approximately 225 million, with around 34 million registered vehicles. This translates to roughly one vehicle for every seven people while there was approximately one car for every 16 individuals.
In 2021, Japan had a population of around 125 million, with approximately 88 million registered vehicles. This implies there was approximately one vehicle for every two people while the ratio was roughly one car for every three individuals.
As of 2021, South Korea’s population was approximately 51 million, with around 28 million registered vehicles. This equates to roughly one vehicle for every two people and approximately one car for every three individuals.
In 2021, Bangladesh had a population of around 166 million, with approximately 21 million registered vehicles. This indicates that there was approximately one vehicle for every eight people while the ratio was roughly one car for every 15 individuals.
Not enough vehicles in SL
Speaking to The Sunday Morning Business, Ceylon Motor Traders’ Association (CMTA) Chairman Charaka Perera, while acknowledging that some believed that Sri Lanka had an overabundance of vehicles on the road, disagreed with the claim.
“I believe those who make such statements are simply observing from their offices in Colombo without considering the broader perspective or the plight of the masses, especially in rural markets. Generally, the automotive industry’s market saturation is evaluated by examining the ratio of vehicles per 1,000 people,” he stated.
According to him, in a developed nation like the US, there are approximately 900 passenger cars per 1,000 individuals. In Western Europe, this figure stands at around 600 vehicles per 1,000 people, while Japan boasts a figure of over 500 vehicles per 1,000 individuals. Certain Asian countries have more than 200 passenger cars per 1,000 people. In contrast, Sri Lanka currently has only 50 cars per 1,000 individuals, indicating significant potential for growth.
Perera stated that in regions characterised by sparse population density, access to personal vehicles was often deemed indispensable for individuals. This necessity stems from the limited availability and reliability of public transportation networks in such areas. Unlike densely populated urban centres where public transit options are more abundant and accessible, rural or remote areas frequently lack comprehensive public transport systems.
In these less densely populated regions, where communities are dispersed over vast geographical areas, reliance on private vehicles becomes a practical imperative. Public transportation services, if available, may be infrequent, unreliable, or altogether absent due to the logistical challenges of serving dispersed populations.
Perera stated that owning a vehicle afforded individuals the autonomy and flexibility to travel conveniently and efficiently, whether it was for commuting to work, accessing essential services, or engaging in daily activities.
Furthermore, the absence of adequate public transportation infrastructure in low-density areas underscores the importance of personal vehicles as lifelines for residents. For many individuals, especially those living in rural or remote communities, owning a vehicle isn’t merely a matter of convenience; it’s a critical enabler of mobility, independence, and access to essential resources and opportunities. Thus, in areas where public transport options are limited, the significance of personal vehicles as a means of transportation cannot be overstated.
“Let’s consider a scenario where someone from a town off Embilipitiya needs to take their ailing parent to the hospital, but the bus service operates only once a day. The need for a two wheeler, three wheeler, small truck, or car is badly felt in such situations. When we look beyond Colombo, it’s evident that people often lack access to transportation.
“While I hope that improvements will be made to public transportation soon for the benefit of the masses, the demand for private transport remains high, especially in rural areas. Thus, there is undoubtedly a significant market demand for two wheelers, three wheelers, and passenger cars.”
According to the CMTA, the market’s demand for vehicles is the main catalyst behind the rise in prices of pre-owned vehicles. The scarcity of available vehicles and robust demand are the primary factors fuelling this uptick. Typically, when demand outstrips supply, prices tend to escalate. CMTA is of the view that it is imperative for the Government to devise strategies to enhance the affordability of vehicles for the populace or allocate resources towards improving the public transportation infrastructure.
Other side of the coin
In discussing the number of vehicles on the roads, the capacity of the roads to handle these vehicles, road maintenance, traffic congestion, and other resultant issues become a supporting point to the argument that there are enough vehicles on the roads.
According to economic researcher Rehana Thowfeek, in assessing a country’s income and development status, the prevalence of private vehicles often emerges as a symbol of affluence, primarily among the wealthier segments of society.
However, she added that reliance on private vehicles should not be misconstrued as a definitive indicator of economic growth. Instead, the emphasis should be on the accessibility and quality of public transportation systems.
“Unfortunately, the public transport sector in Sri Lanka has historically been neglected, with minimal attention given to its improvement and expansion. While investments in highways and roads are important, prioritising public transport infrastructure is equally important. A majority of the population relies on public transportation, yet resources are disproportionately allocated to projects catering a smaller segment of society,” Thowfeek explained.
The missed opportunities, such as the Millennium Challenge Corporation (MCC) compact and the proposed Light Rail Transit (LRT) project, exemplify this oversight. Implementing the LRT system, for instance, could have alleviated congestion in central Colombo, consequently enhancing overall quality of life and raising the standard of living for residents.
While the debate between the need for more private vehicles and the importance of investing in public transport is multifaceted, a balanced approach that considers both perspectives is essential for addressing Sri Lanka’s transportation challenges effectively.
Rather than viewing private vehicles and public transport as mutually exclusive solutions, policymakers should prioritise integrated transportation planning that encompasses both modes of transport.
