Two major cities relax limits on new-vehicle sales
Guangzhou and Shenzhen, at the request of the Chinese government, have become China's first two major cities to ease annual limits on new passenger vehicles sold locally.
In addition to Guangzhou and Shenzhen, at least 10 other large Chinese cities, including Beijing and Shanghai, have imposed annual quotas in the past decade on vehicle sales to ease local traffic congestion and pollution.
This year and in 2020, Guangzhou will raise its annual new-vehicle sales limit to 160,000 from 100,000, while Shenzhen will increase its annual cap to 120,000 from 80,000.
The two cities are in South China’s Guangdong province, the largest provincial market for new vehicles in China. Each city has more than 10 million residents.
Beijing, seeking to reverse a downturn in the domestic new-vehicle market, released policy guidelines in January urging cities to “improve” measures limiting new-vehicle sales. More Chinese cities that restrict new-vehicle sales through quota systems are expected to follow suit.