Executive Summary

Delhi, India is a rapidly expanding megacity. Like many other cities its size, Delhi faces urban gridlock and dangerous levels of air pollution. Vehicle ownership is still a fraction of that in industrialized countries, but remarkably high considering the population's relatively low income. Worldwide, energy use is increasing faster in the transport sector than in any other sector, and fastest of all in developing countries. From 1980 to 1997, transportation energy use and associated greenhouse gas (GHG) emissions increased over 5 percent per year in Asia (excluding the former Soviet Union) and 2.6 percent in Latin America, compared to one percent growth in greenhouse gases from all sectors worldwide.

Delhi faces the same transportation, economic, and environmental challenges of other megacities. Population, motor vehicles, pollution, and traffic congestion are all increasing. Air pollution levels greatly exceed national and World Health Organization health-based standards, and transportation is by far the largest source of pollution. In the past 30 years, Delhi's population more than tripled and the number of vehicles increased almost fifteenfold.

By 2000, Delhi had about 2.6 million motor vehicles - 200 for every 1,000 inhabitants, a rate far higher than most cities with similar incomes. Most of these vehicles are small, inexpensive motorcycles and scooters, rather than automobiles. This proliferation of vehicles in a relatively poor city indicates the strong desire for personal transport - a phenomenon observed virtually everywhere. Delhi is an example of how that desire can now be met with relatively low incomes.

Delhi is expected to continue growing at a rapid rate. Its population is expected to surpass 22 million by 2020. Motor vehicles, including cars, trucks, and motorized two- and three-wheelers, are expected to grow at an even faster rate. The domestic auto industry is predicting car sale increases of 10 percent per year. With an extensive network of roads and increasing income, there is every reason to expect vehicle sales and use to continue on a sharp, upward trajectory.