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Home » Economics » It’s not that simple: the math on vehicle sales and registration

It’s not that simple: the math on vehicle sales and registration

February 2021
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I read the statement of a government official about vehicle sales, and the subsequent responses it got. He cited math and seemingly joked about not being good at it while trying to make sense of the numbers. It is not as easy as he supposes. And I think that is partly why we fail to address the transport problems. For one, we think it is just about road capacities. For another, it may be about public transport supply. These are not mutually exclusive but rather intertwined along with so many other factors.

Housing, for one, (i.e., its availability, affordability and location) is among the most important factors that affect or influence how we commute. I have been asking the question about housing affordability in CBDs such as Makati, Ortigas and BGC. Lucky for those who already reside at or near those places but most people working there have to contend with expensive mortgages, leases or rents. How much is a condo unit in BGC, for example? If you have a family of 4, you certainly can’t and won’t opt for a studio unit just because its near your workplace. It’s obvious here that you also would have to consider where your children will be going to school as well as the workplace location of your partner if he or she is also working. No schools for now but imagine how it was and would be once our children go back to physical school. Such facts of life seem lost to many pundits commenting or offering opinions about transportation.

I think to be fair this should also be framed from various perspectives. For example, those vehicle purchases don’t necessarily mean additional vehicles on certain roads. like what one MMDA official claims. These will be distributed across the network of roads, and these will be operating during certain times of the day. Some of these vehicles were purchased by new car owners. Others as replacements to older or unserviceable units (e.g., upgrades). It would be nice to see, for example, the stats from 2008, 2009 & 2010. Thousands of vehicles were doomed by Ondoy in the greater Metro Manila in 2009 resulting in their replacements late that year until 2010. Then there was the boom in sales in the following years as people ventured into TNCs (Uber and Grab). The recent surge in private car use and what seems to be strong sales of these vehicles in the wake of the Covid-19 pandemic is more out of necessity (why do you think people aren’t taking to cycling for their commutes as much as is desired?)

The question why people still prefer to purchase and use their own vehicles has not been answered in the most honest way because different people with their own agenda tend to paint different pictures of the car owner. In some cases, car owners are being portrayed as ‘evil’ while those taking the more environment-friendly modes as ‘good’. Again, it should be obvious that this is not a ‘good’ vs. ‘evil’ discussion nor is it something that is black and white. We should pay (a lot of) attention to the grays, which can have so many different shades when it comes to transportation. No one really wins a “holier than thou” exercise where people on opposite sides tend to take hard line stances and close their minds to constructive ideas from either side.


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