Mexican Media Brands
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.
#economics #regulations
Share
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.
RELATED CONTENT
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.