May 29, 2019 (China Knowledge) - Guangzhou and Shenzhen will be easing car ownership restrictions in a bid to boost slowing auto sales in the country which has been a key pillar of growth for China.
The two cities are planning to increase the quota of new license plates given out each month which was previously put in place to control traffic congestion and pollution.
The moves come as the National Development and Reform Commission (NDRC) called for all cities that had license plate restrictions to increase their quota, calling for a 50% increase this year from last year’s levels.
Both Guangzhou and Shenzhen currently limit their new license plates given out each year to 120,000 and 100,000 respectively. As a result, demand far exceeds supply with just 0.24% of bidders being able to receive a license each month.
This easing of restrictions could provide a much-needed boost to the country’s auto industry where sales of passenger vehicles have fallen by more than 10% year-on-year during the first 4 months of this year.
China’s declining auto market has now become a major drag on the country’s overall consumption with growth in retail sales falling to 7.2% in April, the lowest level in 16 years.
Copyright © 2018 www.chinaknowledge.com
Send feedback or comments to: email@example.com
For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com
To access our page on Bloomberg, type CKFI