Guesstimate — Estimate the number of cars in Delhi

Welcome to Day 6/30 of Mastering Guesstimates

Q. Estimate the number of cars in Delhi.

Here, before starting I would like to clarify one thing that on reading the statement at first you might be thinking of this as a Market Sizing Guesstimate but actually it’s not, in this statement we just need to estimate the total number of cars present in Delhi currently.

Clarifying Questions:

1. Personal cars or cabs, taxis, other four wheelers also need to be considered?
2. Delhi or Delhi NCR?
3. Any specific type of car like hatchback, sedan or SUV?

A. Consider only personal ones, calculate for Delhi and no specific car type i.e. calculate for all types.

Assumptions:

1. Delhi population is ~3 Crores.
2. Average family size in urban cities is ~4 persons per family.

Approach:

Population of Delhi = 3 Crores

Number of Households in Delhi = 3 Cr/4 = 75 Lakhs

Dividing the households based on the income segment:

Households based on the income segment

Number of Cars in Delhi = 22*1 + 5*1 + 2.5*2 = ~32 lakh cars

Note: Upcoming Guesstimate will be based on the finding of this number (this guesstimate only) so make sure you understand the approach of this guesstimate properly.

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Stay tuned for Day 7/30 of Mastering Guesstimates, Until then, let curiosity be your guide and let the adventure begin!

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