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Two Chinese Cities Relax Car Ownership Rules
Guangzhou and Shenzhen are loosening rules on new-car purchases and ownership in a bid to help revive China’s stalled car market.
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Guangzhou and Shenzhen are loosening rules on new-car purchases and ownership in a bid to help revive China’s stalled car market.
The new policies are in response to a central government directive for local governments to find ways to encourage new-car purchases.
The Nikkei says Guangdong province has ordered cities to refrain from imposing new restrictions on cars to ease traffic congestion and air pollution. The region also is making it easier for customers to buy license plates in Guangzhou and Shenzhen.
As is the case elsewhere in China, would-be car buyers in those two cities must bid for a license or enter a lottery. In either case, an estimated 99% of participants come away empty-handed, the newspaper says.
Analysts agree the central government’s new policy will hike demand for new cars. But they also say relaxing current restrictions could hinder growth in the sales of electric vehicles by making conventionally powered cars easier to obtain, especially now that the government is phasing out incentives on EVs.
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