Want to move to Shanghai to cash in on the Chinese car boom? Want to drive a car in Shanghai? Better bring a lot of money.
Prices for a license plate in Shanghai rose to at two year high in the year’s first plate auction, Shanghai Daily reports. The average price of a private car license rose to US$5,617. A new QQ goes for as little as $4,100.
To curb traffic in the notoriously clogged city, Shanghai auctions off around 8,000 plates a month. At yesterday’s auction were 18,975 bidders.
Demand is high because car sales usually spike up during the Lunar New Year, which falls on February 14 this year. There are also rumors that the city may limit car registrations further in preparation for the World Expo 2010, starting in May in Shanghai.
And let’s not forget the most obvious explanation: Demand for cars remains hot in China, with sales projected to be around 15m this year.