By on July 1, 2012

The sprawling city Guangzhou in southern China sprung a nasty surprise on its (pop. 12.7 million citizens: it drastically slashed the number of new cars being registered. Observers predict that this move could have far-reaching consequences on the Chinese car market.

On Saturday night, Guangzhou’s city government announced that it will only allow 120,000 passenger vehicles to be registered over a one-year trial period, China Daily reports. Only 10,000 licenses will be handed out per each month. The new quota system went into effect today.

Currently, the city adds more than 30,000 units to its streets each month. It is currently unclear how the limits will be administered.  The city announced that details will be forthcoming later.

Guangzhou is the third Chinese city to cap passenger vehicle registrations.

Shanghai limits its registrations to 20,000 per month and has been auctioning off its license plates for many years,, Prices are hovering at around 60,000 RMB ($9,400) per plate.

Beijing started limiting car new registrations to 20,000 per month in January 2011. The plates are assigned via a lottery system. This system caused great frustration as many plates were snapped up by people who did not buy.

Guiyang, the small capital of southwest China’s Guizhou province, introduced a similar lottery system last year. Only 2,000 plates are made available each year.

While the Shanghai system had been seen as an oddity, all eyes were on whether Beijing would set an example for other cities. Apparently, this is the case. “Should other cities follow suit, we can expect to see the Chinese car market fall considerably in the next few years,” says Chinacartimes.

 

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10 Comments on “China Killing Its Own Car Market: Car-Rationing Spreads To Other Cities...”


  • avatar

    Anythings better than London’s failed and much hated system of charging you the priveledge of driving in the fair city.

    • 0 avatar
      Toucan

      Failed? Hated? Why?

      Congestion Charge charges you for the actual sin of driving in the city centre. Sorry, dude, such is life. Too little space, too many willing ones, so the free market raises the price. Before you start hating it, propose an alternative. The only one known to me is the city clogged entirely all the time.

      Chinese system penalizes you even if you DON’T drive in the centre at all.

      • 0 avatar
        CJinSD

        Isn’t it ‘funny’ how progressives always claim to be champions of the middle class while scheming to turn their rights into privileges reserved for the elite?

      • 0 avatar
        Toucan

        I’d believe it’s a generic feature of the mankind, not even limited to any particular groups…

        I’d name it the key of 95% human problems.

      • 0 avatar
        CJinSD

        You really think that 95% of human problems are the result of the middle class being too big and having too much? It is little wonder that progressives only seek to destroy.

  • avatar
    Toucan

    China tackles demographic dynamics unknown to the rest of the world so countermeasures will be one of its kind as well.

    One child policy then, one/no car policy now. Clogged, paralyzed cities do not run businesses well and Chinese are born business people. It’s perfectly rational, in terms of costs-benefits, then.

  • avatar
    CJinSD

    Get ready for China to become the largest auto exporter the world has ever known. This is just more of the same: Warfare as ‘business.’ Expect the Joe Bidens of the world to celebrate it just as they celebrate killing female babies.

  • avatar
    namesakeone

    And GM took all of those measures (killing Pontiac and Saturn but sparing Buick) to make inroadds into the burgeoning Chinese market. I bet someone at the Renaissance Center in Detroit (GM World Headquarters) is screaming “NO!”

    • 0 avatar
      Toucan

      > I bet someone at the Renaissance Center in Detroit (GM World
      > Headquarters) is screaming “NO!”

      That was a good laugh. “Renaissance Center” and “NO!”. Thank you.

  • avatar
    Ron B.

    China… if you lived there you would know that car isn’t necesary .you are bussed to your work,you are bussed back to the mgalopolis apartment building (small city in western terms) at night. Your food etc can be bought at street level at any one of myriad of market places. Once a year you are permitted to return to your home province for the new year celebrations and you are permitted to return to your place of work. You do this for several years until You become old and you die. why do you need a car in the workers paradise?

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