Parking Update | The lifting of car purchase restrictions in Beijing and Shanghai is not looking promising: traffic congestion and steep parking fees are deterring consumers.

On September 12, the Guiyang Municipal Government announced the abolition of its vehicle‑purchase lottery system, making Guiyang the first city among the nine provinces and municipalities nationwide that have implemented purchase restrictions to fully lift those measures.

 

Guiyang has completely lifted its car purchase restrictions.

On September 12, according to the official website of the Guiyang Municipal Government, the People’s Government of Guiyang City issued a decision on September 10, 2019, to repeal the “Provisional Regulations on the Administration of Passenger Vehicle License Plates in Guiyang,” which shall take effect from the date of its publication.

 

Just two days ago, on September 10, the Guizhou Provincial Development and Reform Commission and eight other agencies jointly issued the “Notice on Several Policy Measures to Promote the Sustainable and Healthy Development of the Automotive Consumption Market,” which stipulates that in 2019, Guiyang City will increase the number of license plates issued by more than 30,000 compared with 2018, and, depending on specific circumstances, will promptly suspend the lottery system for small‑car dedicated license plates.

 

Guiyang is the third province or municipality, after Beijing and Shanghai, to implement vehicle‑purchase restrictions. On July 11, 2011, the Guiyang Municipal Government issued the Interim Regulations on the Issuance and Administration of Special‑Designation License Plates for Passenger Cars in Guiyang (hereinafter referred to as the “Regulations”). Under these Regulations, newly registered passenger cars in Guiyang are subject to two categories of management: the first category comprises special‑designation license plates for small passenger vehicles, which permit access to all roads; this category operates under a quota system, with a monthly allocation of 2,000 plates. The second category consists of standard license plates, which prohibit entry into roads within the First Ring Road (inclusive); there is no limit on the number of such plates that may be issued.

 

For several years after Guiyang introduced its vehicle‑purchase‑restriction policy, the measure remained a subject of debate within the industry. As of the end of 2018, the city’s total population stood at 4.72 million, with approximately 1.4 million registered motor vehicles. “Guiyang is not a first‑tier city, and compared with other cities that have implemented purchase restrictions, its per‑capita vehicle ownership is also relatively low,” a senior executive at a domestic‑brand automaker told a China Securities Journal reporter.

 

In July this year, the Guiyang Municipal Public Security Traffic Administration stated in a notice soliciting public comments on the repeal of the “Interim Regulations on the Management of Passenger Vehicle License Plates in Guiyang” that, as traffic congestion has gradually eased, air quality has steadily improved, and the “delegation, regulation, and service” reform has continued to deepen, the regulations are no longer necessary and should therefore be repealed.

 

The implementation of the policy to lift vehicle purchase restrictions has sparked some controversy among Guiyang residents. One resident told a China Securities Journal reporter, “For those who are trying to obtain a license plate, I’m very supportive.” However, many others argue that Guiyang should not abolish its car‑purchase limits, as urban roads are likely to become even more congested in the future.

 

Some residents bitterly joked, “After waiting so long for a license‑plate lottery number, we finally got one—only to have it canceled now.” Others suggested that only by improving urban planning, raising driver awareness, and imposing stricter fines can traffic congestion be effectively alleviated; lifting purchase restrictions could, in the short term, lead to even worse gridlock.

 

 

The government is actively pushing to ease restrictions on car purchases.

 

In 2018, the automotive industry recorded its first year of negative growth in 28 years. Since 2019, the downward trend has persisted. According to the latest data from the China Association of Automobile Manufacturers, from January to August, automobile production and sales reached 15.939 million units and 16.104 million units, respectively, down 12.1% and 11% year on year.

 

To boost consumption, the government has issued multiple policy documents this year to lift restrictions on automobile purchase quotas.

 

In early June, the National Development and Reform Commission, the Ministry of Ecology and Environment, and the Ministry of Commerce issued the “Implementation Plan for Promoting the Renewal and Upgrading of Key Consumer Goods and Facilitating Resource Recycling (2019–2020),” which stipulates that restrictions on the use or purchase of new-energy vehicles shall not be imposed, and any such measures already in place must be abolished. Local authorities are encouraged to provide support to car‑less households purchasing their first household‑use new‑energy vehicle.

 

On August 27, 2019, the General Office of the State Council issued the “Opinions on Accelerating the Development of Circulation and Promoting Commercial Consumption,” which set forth 20 policy measures aimed at stabilizing consumer expectations and boosting consumer confidence. The document also seeks to facilitate the circulation of used cars by further implementing the comprehensive removal of restrictions on the relocation of used vehicles; in key regions for air pollution prevention and control, used cars that meet vehicle emission standards should be permitted to be traded and circulated within the same province or municipality.

 

Data show that across the country, 61 cities have vehicle ownership exceeding one million, 27 cities exceed two million, and eight cities surpass three million. Previously, vehicle purchase restrictions were in place in nine provinces and municipalities: Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Tianjin, Shijiazhuang, Guiyang, and Hainan.

 

In addition to Guiyang, Guangzhou, Shenzhen, and Hainan had previously issued proactive responses to the home‑purchase restriction policies.

 

On June 3, Guangzhou and Shenzhen took the lead in introducing new policies to relax restrictions on car license‑plate lotteries and auction quotas. Specifically, Guangzhou will add 100,000 additional small‑and‑medium‑sized vehicle license‑plate quotas from June 2019 to December 2020, while Shenzhen will increase its annual quota for ordinary passenger cars by 40,000 each year from 2019 to 2020.

 

On August 30, multiple departments in Hainan Province jointly issued the “Measures for Implementing Policies and Measures to Boost Automobile Consumption.” Effective September 2019 and through the month of the lottery draw, any unused ordinary passenger car incremental quotas from the same month of the previous year will be automatically carried over to the current month’s total quota for ordinary passenger cars. From August to December 2019, an appropriate additional number of ordinary passenger car incremental quotas will be allocated each month on top of the originally scheduled quota.

 

 

The government is actively pushing to ease restrictions on car purchases.

 

In 2018, the automotive industry recorded its first year of negative growth in 28 years. Since 2019, the downward trend has persisted. According to the latest data from the China Association of Automobile Manufacturers, from January to August, automobile production and sales reached 15.939 million units and 16.104 million units, respectively, down 12.1% and 11% year on year.

 

To boost consumption, the government has issued multiple policy documents this year to lift restrictions on automobile purchase quotas.

 

In early June, the National Development and Reform Commission, the Ministry of Ecology and Environment, and the Ministry of Commerce issued the “Implementation Plan for Promoting the Renewal and Upgrading of Key Consumer Goods and Facilitating Resource Recycling (2019–2020),” which stipulates that restrictions on the use or purchase of new-energy vehicles shall not be imposed, and any such measures already in place must be abolished. Local authorities are encouraged to provide support to car‑less households purchasing their first household‑use new‑energy vehicle.

 

On August 27, 2019, the General Office of the State Council issued the “Opinions on Accelerating the Development of Circulation and Promoting Commercial Consumption,” which set forth 20 policy measures aimed at stabilizing consumer expectations and boosting consumer confidence. The document also seeks to facilitate the circulation of used cars by further implementing the comprehensive removal of restrictions on the relocation of used vehicles; in key regions for air pollution prevention and control, used cars that meet vehicle emission standards should be permitted to be traded and circulated within the same province or municipality.

 

Data show that across the country, 61 cities have vehicle ownership exceeding one million, 27 cities exceed two million, and eight cities surpass three million. Previously, vehicle purchase restrictions were in place in nine provinces and municipalities: Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Tianjin, Shijiazhuang, Guiyang, and Hainan.

 

In addition to Guiyang, Guangzhou, Shenzhen, and Hainan had previously issued proactive responses to the home‑purchase restriction policies.

 

On June 3, Guangzhou and Shenzhen took the lead in introducing new policies to relax restrictions on car license‑plate lotteries and auction quotas. Specifically, Guangzhou will add 100,000 additional small‑and‑medium‑sized vehicle license‑plate quotas from June 2019 to December 2020, while Shenzhen will increase its annual quota for ordinary passenger cars by 40,000 each year from 2019 to 2020.

 

On August 30, multiple departments in Hainan Province jointly issued the “Measures for Implementing Policies and Measures to Boost Automobile Consumption.” Effective September 2019 and through the month of the lottery draw, any unused ordinary passenger car incremental quotas from the same month of the previous year will be automatically carried over to the current month’s total quota for ordinary passenger cars. From August to December 2019, an appropriate additional number of ordinary passenger car incremental quotas will be allocated each month on top of the originally scheduled quota.

 

 

The government is actively pushing to ease restrictions on car purchases.

 

In 2018, the automotive industry recorded its first year of negative growth in 28 years. Since 2019, the downward trend has persisted. According to the latest data from the China Association of Automobile Manufacturers, from January to August, automobile production and sales reached 15.939 million units and 16.104 million units, respectively, down 12.1% and 11% year on year.

 

To boost consumption, the government has issued multiple policy documents this year to lift restrictions on automobile purchase quotas.

 

In early June, the National Development and Reform Commission, the Ministry of Ecology and Environment, and the Ministry of Commerce issued the “Implementation Plan for Promoting the Renewal and Upgrading of Key Consumer Goods and Facilitating Resource Recycling (2019–2020),” which stipulates that restrictions on the use or purchase of new-energy vehicles shall not be imposed, and any such measures already in place must be abolished. Local authorities are encouraged to provide support to car‑less households purchasing their first household‑use new‑energy vehicle.

 

On August 27, 2019, the General Office of the State Council issued the “Opinions on Accelerating the Development of Circulation and Promoting Commercial Consumption,” which set forth 20 policy measures aimed at stabilizing consumer expectations and boosting consumer confidence. The document also seeks to facilitate the circulation of used cars by further implementing the comprehensive removal of restrictions on the relocation of used vehicles; in key regions for air pollution prevention and control, used cars that meet vehicle emission standards should be permitted to be traded and circulated within the same province or municipality.

 

Data show that across the country, 61 cities have vehicle ownership exceeding one million, 27 cities exceed two million, and eight cities surpass three million. Previously, vehicle purchase restrictions were in place in nine provinces and municipalities: Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Tianjin, Shijiazhuang, Guiyang, and Hainan.

 

In addition to Guiyang, Guangzhou, Shenzhen, and Hainan had previously issued proactive responses to the home‑purchase restriction policies.

 

On June 3, Guangzhou and Shenzhen took the lead in introducing new policies to relax restrictions on car license‑plate lotteries and auction quotas. Specifically, Guangzhou will add 100,000 additional small‑and‑medium‑sized vehicle license‑plate quotas from June 2019 to December 2020, while Shenzhen will increase its annual quota for ordinary passenger cars by 40,000 each year from 2019 to 2020.

 

On August 30, multiple departments in Hainan Province jointly issued the “Measures for Implementing Policies and Measures to Boost Automobile Consumption.” Effective September 2019 and through the month of the lottery draw, any unused ordinary passenger car incremental quotas from the same month of the previous year will be automatically carried over to the current month’s total quota for ordinary passenger cars. From August to December 2019, an appropriate additional number of ordinary passenger car incremental quotas will be allocated each month on top of the originally scheduled quota.

 

 

The government is actively pushing to ease restrictions on car purchases.

 

In 2018, the automotive industry recorded its first year of negative growth in 28 years. Since 2019, the downward trend has persisted. According to the latest data from the China Association of Automobile Manufacturers, from January to August, automobile production and sales reached 15.939 million units and 16.104 million units, respectively, down 12.1% and 11% year on year.

 

To boost consumption, the government has issued multiple policy documents this year to lift restrictions on automobile purchase quotas.

 

In early June, the National Development and Reform Commission, the Ministry of Ecology and Environment, and the Ministry of Commerce issued the “Implementation Plan for Promoting the Renewal and Upgrading of Key Consumer Goods and Facilitating Resource Recycling (2019–2020),” which stipulates that restrictions on the use or purchase of new-energy vehicles shall not be imposed, and any such measures already in place must be abolished. Local authorities are encouraged to provide support to car‑less households purchasing their first household‑use new‑energy vehicle.

 

On August 27, 2019, the General Office of the State Council issued the “Opinions on Accelerating the Development of Circulation and Promoting Commercial Consumption,” which set forth 20 policy measures aimed at stabilizing consumer expectations and boosting consumer confidence. The document also seeks to facilitate the circulation of used cars by further implementing the comprehensive removal of restrictions on the relocation of used vehicles; in key regions for air pollution prevention and control, used cars that meet vehicle emission standards should be permitted to be traded and circulated within the same province or municipality.

 

Data show that across the country, 61 cities have vehicle ownership exceeding one million, 27 cities exceed two million, and eight cities surpass three million. Previously, vehicle purchase restrictions were in place in nine provinces and municipalities: Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Tianjin, Shijiazhuang, Guiyang, and Hainan.

 

In addition to Guiyang, Guangzhou, Shenzhen, and Hainan had previously issued proactive responses to the home‑purchase restriction policies.

 

On June 3, Guangzhou and Shenzhen took the lead in introducing new policies to relax restrictions on car license‑plate lotteries and auction quotas. Specifically, Guangzhou will add 100,000 additional small‑and‑medium‑sized vehicle license‑plate quotas from June 2019 to December 2020, while Shenzhen will increase its annual quota for ordinary passenger cars by 40,000 each year from 2019 to 2020.

 

On August 30, multiple departments in Hainan Province jointly issued the “Measures for Implementing Policies and Measures to Boost Automobile Consumption.” Effective September 2019 and through the month of the lottery draw, any unused ordinary passenger car incremental quotas from the same month of the previous year will be automatically carried over to the current month’s total quota for ordinary passenger cars. From August to December 2019, an appropriate additional number of ordinary passenger car incremental quotas will be allocated each month on top of the originally scheduled quota.

 

 

The government is actively pushing to ease restrictions on car purchases.

 

In 2018, the automotive industry recorded its first year of negative growth in 28 years. Since 2019, the downward trend has persisted. According to the latest data from the China Association of Automobile Manufacturers, from January to August, automobile production and sales reached 15.939 million units and 16.104 million units, respectively, down 12.1% and 11% year on year.

 

To boost consumption, the government has issued multiple policy documents this year to lift restrictions on automobile purchase quotas.

 

In early June, the National Development and Reform Commission, the Ministry of Ecology and Environment, and the Ministry of Commerce issued the “Implementation Plan for Promoting the Renewal and Upgrading of Key Consumer Goods and Facilitating Resource Recycling (2019–2020),” which stipulates that restrictions on the use or purchase of new-energy vehicles shall not be imposed, and any such measures already in place must be abolished. Local authorities are encouraged to provide support to car‑less households purchasing their first household‑use new‑energy vehicle.

 

On August 27, 2019, the General Office of the State Council issued the “Opinions on Accelerating the Development of Circulation and Promoting Commercial Consumption,” which set forth 20 policy measures aimed at stabilizing consumer expectations and boosting consumer confidence. The document also seeks to facilitate the circulation of used cars by further implementing the comprehensive removal of restrictions on the relocation of used vehicles; in key regions for air pollution prevention and control, used cars that meet vehicle emission standards should be permitted to be traded and circulated within the same province or municipality.

 

Data show that across the country, 61 cities have vehicle ownership exceeding one million, 27 cities exceed two million, and eight cities surpass three million. Previously, vehicle purchase restrictions were in place in nine provinces and municipalities: Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Tianjin, Shijiazhuang, Guiyang, and Hainan.

 

In addition to Guiyang, Guangzhou, Shenzhen, and Hainan had previously issued proactive responses to the home‑purchase restriction policies.

 

On June 3, Guangzhou and Shenzhen took the lead in introducing new policies to relax restrictions on car license‑plate lotteries and auction quotas. Specifically, Guangzhou will add 100,000 additional small‑and‑medium‑sized vehicle license‑plate quotas from June 2019 to December 2020, while Shenzhen will increase its annual quota for ordinary passenger cars by 40,000 each year from 2019 to 2020.

 

On August 30, multiple departments in Hainan Province jointly issued the “Measures for Implementing Policies and Measures to Boost Automobile Consumption.” Effective September 2019 and through the month of the lottery draw, any unused ordinary passenger car incremental quotas from the same month of the previous year will be automatically carried over to the current month’s total quota for ordinary passenger cars. From August to December 2019, an appropriate additional number of ordinary passenger car incremental quotas will be allocated each month on top of the originally scheduled quota.