Two major cities relax limits on new-vehicle sales


Automotive News China

Automotive News | 2019-6-4

Guangzhou and Shenzhen, at the request of the Chinese government, have become China's first two major cities to ease annual limits on new passenger vehicles sold locally to boost weaker industry volumes.

This year and in 2020, Guangzhou will raise its annual new-vehicle sales limit to 160,000 from 100,000, while Shenzhen will increase its annual cap to 120,000 from 80,000, according to information on the cities' websites Sunday. 

The two cities are in South China¡¯s Guangdong province, the largest provincial market for new vehicles in China. Each city has more than 10 million residents. 

More Chinese cities that restrict new-vehicle sales through quota systems are expected to follow suit. 

Beijing, seeking to reverse a downturn in the domestic new-vehicle market, released policy guidelines in January urging cities to ¡°improve¡± measures limiting new-vehicle sales. 

In addition to Guangzhou and Shenzhen, at least 10 other large Chinese cities, including Beijing and Shanghai, have imposed annual quotas in the past decade on vehicle sales to ease local traffic congestion and pollution. 

China¡¯s new-vehicle deliveries contracted in 2018 for the first time in nearly three decades, dropping 4.1 percent to below 23.7 million. 

Through April, new-vehicle deliveries across the country slumped 15 percent from a year earlier to 6.8 million.




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