Lucky Beijing License Plate Winners To Be Punished Severely

Bertel Schmitt
by Bertel Schmitt

Beijingers who are lucky enough to win the license plate lottery may be punished severely – if they don’t buy a car. In the beginning of the year, China’s capital instated a rule by which new car owners must enter a lottery for a license plate. Only 17,600 plates are available per month. In the latest draw, some 530,000 people did compete for the 17,600 plates. Only one out of 30 applicants could win. And what are the lucky winners doing? Most of them do nothing. In April, only 3,700 exercised their hard-won right and bought a car. At least that’s up from 2,000 in January. Now, the city is thinking about meting out harsh punishment.

At bjhjyd.gov.cn, the website where the carless Beijinger applies for a lottery ticket to ride, the city solicits public opinion about possible penalties for people who win, but don’t buy. (If you go to the site, many security services will warn you that it contains spyware – just take my word for it. It’s in Chinese anyway.)

One option is to keep the current policy. Currently, if the right is not used within six months, it is forfeited, but the prospective car owner can re-apply. Good luck. Another choice is to bar them from applying for a year. The third option is no lucky draw for two years.

Doing away with the lottery is not on the menu. Neither is transferring the right, which would create a frenzy of a market.

According to China Daily, “Beijing’s auto market has stagnated since car restriction regulations took effect.” Stagnated? Collapsed would be the appropriate word. A total of 71,900 cars were sold in the first four months of this year in the city, a 62 percent drop compared with the same period last year.

Last year, between 700,000 and 890,000 cars changed hands in Beijing, nobody knows for sure. Beijing’s population is 19.6 million. As of April, there were 4.9 million registered vehicles in the capital.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • GS650G GS650G on Jun 06, 2011

    It sounds like the lottery is no longer needed. market forces took care of the car buying problem. But there are limits to the PLA acceptance of capitalism. After all, the right to own a car has GOT to be regulated and once granted it's insulting not to exercise it. Especially when new car sales are tanking and that hurts the government in other subtle ways.

    • See 2 previous
    • Wsn Wsn on Jun 06, 2011

      @cole Depending on who you ask. If you are mid-aged, married, and have a nice apartment close to a subway station, you really don't need a car there. But if you are a single man that can afford a car, any car, it will greatly help you get laid. Something cute like TT or Z4 can let you literally pick whoever you want to f*ck tonight. P.S. The above statement holds true for Chinese men. If you are an OK looking Caucasian man, you don't even need that TT.

  • TonyJZX TonyJZX on Jun 06, 2011

    I find it ironic that in the west where cars have never been cheaper to buy that people just don't want car ownership any more... rising cost of ownership and oppressive govt. is putting paid to that and kids seem to want iphones don't they? this has been a popular topic on TTAC in the past... phones. vs cars getting kids to buy cars etc. And yet there is that pull in the old kingdom...

    • Wsn Wsn on Jun 06, 2011

      Please see my previous comment. Car ownership is attractive in China, because not everyone can afford it (thus causing the guy with a car to get more girls than the guy who doesn't). In the US, a car simply doesn't have that appeal any more. Just look at Weiner or Schwarzenegger. Man, their Chinese counterparts must pity them a lot.

  • FreedMike If Dodge were smart - and I don't think they are - they'd spend their money refreshing and reworking the Durango (which I think is entering model year 3,221), versus going down the same "stuff 'em full of motor and give 'em cool new paint options" path. That's the approach they used with the Charger and Challenger, and both those models are dead. The Durango is still a strong product in a strong market; why not keep it fresher?
  • Bill Wade I was driving a new Subaru a few weeks ago on I-10 near Tucson and it suddenly decided to slam on the brakes from a tumbleweed blowing across the highway. I just about had a heart attack while it nearly threw my mom through the windshield and dumped our grocery bags all over the place. It seems like a bad idea to me, the tech isn't ready.
  • FreedMike I don't get the business case for these plug-in hybrid Jeep off roaders. They're a LOT more expensive (almost fourteen grand for the four-door Wrangler) and still get lousy MPG. They're certainly quick, but the last thing the Wrangler - one of the most obtuse-handling vehicles you can buy - needs is MOOOAAAARRRR POWER. In my neck of the woods, where off-road vehicles are big, the only 4Xe models I see of the wrangler wear fleet (rental) plates. What's the point? Wrangler sales have taken a massive plunge the last few years - why doesn't Jeep focus on affordability and value versus tech that only a very small part of its' buyer base would appreciate?
  • Bill Wade I think about my dealer who was clueless about uConnect updates and still can't fix station presets disappearing and the manufacturers want me to trust them and their dealers to address any self driving concerns when they can't fix a simple radio?Right.
  • FreedMike I don't think they work very well, so yeah...I'm afraid of them. And as many have pointed out, human drivers tend to be so bad that they are also worthy of being feared; that's true, but if that's the case, why add one more layer of bad drivers into the mix?
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