Manufacturing News

Guangzhou becomes 4th Chinese city to cap new-car sales to curb smog, traffic

The south China city of Guangzhou enacted a rule on Sunday restricting new-car sales to 10,000 units per month, according to the Guangzhou city government.

The move, which is aimed at easing traffic congestion and air pollution, has made Guangzhou the fourth Chinese city limiting new-car sales.

Starting July 1, prospective car buyers must participate in a monthly lottery organized by the city government. Only lottery winners can obtain license plates for the cars they want to buy.

With the local passenger vehicle fleet expanding 19 percent each year over the past five years, traffic congestion and air pollution have deteriorated, the Guangzhou city government said.

Guangzhou has 16 million residents and 2.4 million vehicles.

Last year, Beijing and Guiyang restricted new-car sales by requiring local car buyers to participate in a car registration lottery.

In 2001, Shanghai limited new-car sales by organizing monthly auctions of license plates. In June, license plates were auctioned off for 58,227 yuan ($9,155) on average.

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