Car plate quota may be eased
By Jin Jing |
June 25, 2011, Saturday
|
Print Edition
Print Edition
SHARES of car makers surged yesterday after media reports said the Chinese government may ease the license plate quota to help boost demand amid sluggish sales.
The National Development and Reform Commission and other government agencies have applied to the State Council to seek changes or remove license plate quotas, according to National Business Daily yesterday, citing unnamed people from the auto makers' association.
But Dong Yang, deputy secretary general of the China Association of Automobile Manufacturers, denied the reports, saying it is "impossible."
In response to severe traffic congestion, Beijing imposed a quota on the number of license plates handed out each month this year in a lottery draw. Since January, Beijing has offered 20,000 license plates each month with a quota of 240,000 for this year. The measure has hurt car sales as about 1.7 million vehicles were sold in 2009 and 2010 in the capital.
It has been reported that other cities like Shenzhen and Guangzhou may follow Beijing's lottery system.
The license plate quota and the end of government incentives have been key factors in slowing auto sales.
"The impact of the license plate quota is obvious," said Cui Dongshu, an official with the China Passenger Car Association, "The latest suggestion is mainly aimed at preventing other cities from following the car plate quotas."
Demand was also dented due to rising fuel costs and Japan's earthquake, which disrupted production.
In the first five months, sales of passenger cars gained 6 percent year on year, far short of the 55 percent jump in the same period of last year.
Auto sales fell for a second month to 1.04 million units in May, down 8.7 percent from April, the CAAM said.
The National Development and Reform Commission and other government agencies have applied to the State Council to seek changes or remove license plate quotas, according to National Business Daily yesterday, citing unnamed people from the auto makers' association.
But Dong Yang, deputy secretary general of the China Association of Automobile Manufacturers, denied the reports, saying it is "impossible."
In response to severe traffic congestion, Beijing imposed a quota on the number of license plates handed out each month this year in a lottery draw. Since January, Beijing has offered 20,000 license plates each month with a quota of 240,000 for this year. The measure has hurt car sales as about 1.7 million vehicles were sold in 2009 and 2010 in the capital.
It has been reported that other cities like Shenzhen and Guangzhou may follow Beijing's lottery system.
The license plate quota and the end of government incentives have been key factors in slowing auto sales.
"The impact of the license plate quota is obvious," said Cui Dongshu, an official with the China Passenger Car Association, "The latest suggestion is mainly aimed at preventing other cities from following the car plate quotas."
Demand was also dented due to rising fuel costs and Japan's earthquake, which disrupted production.
In the first five months, sales of passenger cars gained 6 percent year on year, far short of the 55 percent jump in the same period of last year.
Auto sales fell for a second month to 1.04 million units in May, down 8.7 percent from April, the CAAM said.
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