Car Sharing In Bolivia: How Many Passengers Per Vehicle?

Bolivia has approximately 26.9 passenger cars per 1,000 people, according to 2019 data from the National Statistical Office. This equates to around 280,000 passenger cars in total, serving a population of over 11 million people. Car ownership is relatively rare in Bolivia, with private vehicles generally being reserved for the economic elite. The majority of the country's vehicles are highly polluting and dangerous second-hand models, with an average age of 40 years.

Bolivia's car ownership rate is low, with private vehicles reserved for the wealthy

Bolivia has a low car ownership rate, with private vehicles generally reserved for the wealthy. In 2019, there were 26.9 passenger cars per 1000 people in Bolivia, compared to 193 in Brazil, 193 in Chile, 58.3 in Paraguay, and 50.6 in Peru. This figure of 26.9 vehicles per 1000 people was an all-time high for Bolivia, with the number reaching an all-time low of 15.8 in 2005.

Car ownership is comparatively uncommon in Bolivia, with private vehicles typically being the preserve of the economic elite. The cost of a new car in Bolivia is significantly higher than in Western countries due to high import taxes, which, when combined with Bolivia's low average salaries, makes car ownership unattainable for many. For example, new car prices in Bolivia are comparable to those in the US, but when import taxes are factored in, the price can be 30% higher.

The high cost of new cars in Bolivia has led to a thriving market for used cars. However, even second-hand vehicles are expensive compared to the West because of the low rate of car ownership, which means that cars do not depreciate as quickly as they do in countries with higher car ownership rates. For example, a second-hand car that would be worth $2000 in the US may be advertised for $5000 in Bolivia.

The cost of car maintenance in Bolivia can also be high, especially when it comes to replacement parts, which are scarce and subject to high taxes. Additionally, car theft is a significant problem in Bolivia, with thieves targeting both whole vehicles and individual parts. This means that car owners must invest in security measures such as garages, insurance, and loud car alarms to protect their vehicles.

The low rate of car ownership in Bolivia is also reflected in the country's public transport system. In La Paz, for example, the government has invested over $500 million in a cable car transportation system to alleviate the city's notorious traffic congestion.

The country has a high number of second-hand vehicles, with an average car age of 40 years

Bolivia has a high number of second-hand vehicles, with an average car age of 40 years. This means that many of the country's vehicles are highly polluting and dangerous. Approximately 60% of the country's fleet is more than 10 years old, and around 17% are between 15 and 20 years old. In 2016, only about 25.4% of Bolivia's vehicles were five years old or newer.

The high number of older, second-hand vehicles in Bolivia can be attributed to several factors. One reason is the high cost of new cars in the country due to significant import taxes, which can make purchasing a new car unaffordable for many Bolivians. The low average salaries in Bolivia further contribute to the preference for second-hand vehicles. Additionally, the country's automotive market is largely composed of used cars, which tend to be more expensive than in Western countries due to lower car ownership and slower depreciation.

The prevalence of second-hand vehicles in Bolivia has implications for road safety and the environment. The country experiences a high number of traffic accidents, with 40,000 reported each year from only 500,000 registered vehicles. This may be partly due to reckless driving practices and a lack of adherence to road rules. Additionally, older vehicles are more likely to be involved in accidents and may lack modern safety features.

The environmental impact of the country's aging vehicle fleet is significant. According to the Ministry of Environment and Water, the vehicle fleet was responsible for 70% of the country's air pollution in 2017, outpacing industries and forest fires as the main source of pollution. However, the transition to electric vehicles in Bolivia is expected to take several years due to their high cost and a lack of encouraging policies.

While Bolivia's high number of second-hand vehicles presents challenges, there are also cultural nuances associated with car ownership. Car ownership is relatively uncommon in Bolivia, and private vehicles are often a status symbol reserved for the economic elite. Driving a decent car is akin to wearing an expensive watch, signifying wealth and status. Despite the challenges and nuances, the country is making efforts to improve its transportation infrastructure, as evidenced by the government's investment in a cable car system to alleviate traffic congestion in La Paz.

In 2019, Bolivia had 26.9 passenger cars per 1,000 people, ranking 103rd out of 135 countries

Bolivia's ranking of 103rd out of 135 countries indicates that it has a lower rate of car ownership compared to many other countries. This is supported by the fact that in 2019, Bolivia's neighbouring countries of Brazil, Chile, Paraguay, and Peru had significantly higher rates of passenger cars per 1,000 people, with Brazil and Chile having 193 vehicles per 1,000 people, Paraguay having 58.3, and Peru having 50.6.

The low rate of car ownership in Bolivia may be due to a variety of factors. One factor could be the high cost of new and used cars in the country due to high import taxes. Additionally, Bolivia's low average salaries may make purchasing a car unaffordable for many people, with car ownership being a privilege reserved for the economic elite. The country's dangerous driving conditions and high rate of traffic accidents may also be a factor in the low rate of car ownership.

Despite the low rate of car ownership, Bolivia has a high number of motor vehicles in circulation. In 2019, there were around two million motor vehicles in the country, and in 2016, the number was estimated to be 1.71 million. However, the majority of these vehicles are old and highly polluting, with an average age of 40 years. This contributes to air pollution, which is a significant issue in Bolivia, with the vehicle fleet being responsible for 70% of the country's air pollution.

La Paz's chaotic traffic and reckless driving style have led to 40,000 accidents yearly

La Paz's chaotic traffic and reckless driving style have led to 40,000 accidents per year across Bolivia. The city's traffic is notoriously bad, with locals exhibiting a reckless and chaotic driving style that includes weaving through tiny gaps in traffic and a general disregard for road rules. Red lights are frequently run, indicators are rarely used, and speed limits are largely ignored. Buses pull out in front of oncoming traffic, and seat belts are seldom worn.

The dangerous driving culture in La Paz has resulted in numerous collisions, with most cars bearing visible scars from previous accidents. The high accident rate is not due to a lack of driving skill, however. In fact, Bolivian drivers are known for their impressive reflexes, skillfully navigating through heavy traffic. Nevertheless, the disregard for road rules and traffic laws contributes to the high number of accidents.

The government has attempted to address the traffic congestion in La Paz by investing over US$500 million in a cable car transportation system. Despite this effort, the city's traffic remains a challenge, with a unique set of issues.

The driving culture in La Paz is also influenced by the social status associated with car ownership. In Bolivia, car ownership is relatively uncommon, and private vehicles are typically reserved for transportistas and the economic elite. As a result, owning a decent car is a status symbol, akin to wearing a gold Rolex. Wealthy individuals relish the opportunity to drive in La Paz, often favouring large, expensive cars such as Hummers, 4WDs, and oversized pickup trucks.

The high cost of new and used cars in Bolivia further contributes to the perception of cars as a luxury item. Due to high import taxes, a new car in Bolivia can cost 30% more than in the USA. Additionally, the low average salaries in the country make purchasing a car a significant financial undertaking. This situation has created a market for expensive second-hand cars, with prices that are often much higher than their actual value.

In conclusion, La Paz's chaotic traffic and reckless driving style are significant contributors to the high number of accidents in Bolivia. The combination of congested roads, a disregard for traffic rules, and the social dynamics surrounding car ownership have led to a challenging driving environment in the city. While the government has taken steps to improve transportation, the unique cultural and economic factors continue to play a role in shaping La Paz's notorious traffic situation.

Bolivia's automotive market is dominated by Japanese brands, with Suzuki as the top-seller in 2020

Bolivia has approximately 185 vehicle brands, dominated by those from Japan. In 2020, the best-selling brand in the country was Suzuki, which saw a 19.1% drop in sales, followed by Renault (-37.7%) and Nissan (-34.1%). Suzuki's leading market share in 2020 was almost 27% of the overall market.

The Suzuki Motor Corporation is a Japanese multinational mobility manufacturer headquartered in Hamamatsu, Shizuoka. It manufactures automobiles, motorcycles, all-terrain vehicles (ATVs), outboard marine engines, wheelchairs, and a variety of other small internal combustion engines. Suzuki has over 45,000 employees and 35 production facilities in 23 countries, as well as 133 distributors in 192 countries. The company was founded in 1909 by Michio Suzuki and initially focused on manufacturing looms for Japan's silk industry. In 1937, Suzuki began developing compact prototype cars, and after a hiatus during World War II, they returned to automobile production in the 1950s.

In Bolivia, Suzuki's Jimny, Vitara, and Swift models have become iconic, performing well in the country's diverse environments. The Grand Vitara, in particular, has been successful in the 4x4 market segment for many years. Suzuki's vehicles are known for their quality, excellent service, security, and durability, making them a popular choice in Bolivia.

Frequently asked questions