The total number of passenger cars on the world's roads in 2020 was 1.18 billion. In some parts of the world, passenger cars are a part of daily life, while in other countries, they remain a luxury for certain groups of the population. The question that comes up is: why does each nation have different numbers of passenger cars?

Wealth and Economy of Countries

The wealthiest countries are sometimes among the smallest in terms of land area, but their financial stability can be disproportionately large when compared to their territory and population size. For example, the entire continent of Europe had 373 million passenger vehicles in use in 2020, while American continent had 244.9 million, and the African continent had 38.1 million. In Asia, the number of passenger vehicles varies significantly between countries, and this difference is easily spotted in examples like India and Japan. India, which is larger in terms of land area and where the population still heavily relies on public transport for economic reasons, had 34.3 million passenger vehicles in use. For many Indian citizens, owning a private vehicle is a luxury due to a lower standard of living. On the other hand, Japan, which has a smaller land area but far more advanced infrastructure and technology, had 62.2 million passenger vehicles in use.

Urbanization and infrastructure

Japan has world-class infrastructure that is all about precision, accuracy, and environmental acceptability. The use of passenger vehicles is minimized, as most Japanese people prefer public transportation for daily needs, avoiding congestion and delays. In the US the situation is different. From a financial point of view, building a public transportation network like Japan’s is much more expensive, mainly because of the country’s size and population density. Many American families live in suburbs where using a private vehicle is almost a necessity.

Cultural and Policy Differences

In Europe, Germany has the largest automotive market, both in production and sales. The automotive industry has shaped German culture and economy, with a rich heritage and history tied to iconic brands like Mercedes-Benz and BMW. This historical legacy makes Germans very proud, and car ownership has become a status symbol and an important part of their national identity. While the car serves as a cultural symbol in Germany, in Indonesia and the rest of Southeast Asia, the motorbike takes that role. Riding motorcycles or scooters facilitates movement through dense traffic, makes parking easier, and consumes less fuel - nearly every other person owns one.

Influence of Fuel Prices and Environmental Regulations

It is well-known that traffic is one of the major pollutants, contributing to greenhouse gas emissions, urban pollution, and global warming. Due to this, economically advanced nations are looking for alternative means to substitute fossil fuels. A clear example of this is Norway, which maintains consistently high taxes on fossil fuels to encourage the transition to electric vehicles and the use of public transport with electric vehicles or those running on biogas. The Netherlands provides another example where cycling as a mode of transport is quite popular, coupled with well-established infrastructure, including wide bike paths and ample parking facilities for bicycles. Living standards in these countries have improved through reduced traffic congestion and emissions.

The number of cars per person largely represents a complex interaction between economic, infrastructural, urban, and cultural factors that shape the way people move around the world, making it a topic of ongoing discussion, as global trends continue to change.