Automobile Registration Restriction: Shenzhen Becomes Seventh City to Regulate Ownership Volume
- In China, automobile ownership volume rose to 145 million units in 2014, causing worsening air pollution and traffic congestion. For this reason, after Shanghai, Beijing, Guiyang, Guangzhou and Tianjin, in 2014 two additional cities Hangzhou and Shenzhen introduced registration restriction on automobiles. The number of cities which introduced such regulation grew to seven.
- Beijing and Guiyang implemented only the license plate lottery system, while Shanghai has been using only the auction system. The other four cities use a combination of lottery and auction for distributing license plates. Out of the four cities, Shenzhen adopted a 2:4:4 distribution ratio, of which license plates for 20,000 electric vehicles and 40,000 ICE (internal combustion engine) vehicles may be obtained through lottery, and 40,000 ICE vehicle license plates through auction in 2015 (compared to 2014's registration volume of around 500,000 units).
- Another method which is expected to resolve air pollution is the introduction of NEVs (new-energy vehicles). For this reason, NEVs enjoy various types of preferential measures in these seven cities. For instance, Beijing allocated 30,000 plates out of the total of 150,000 plates available in 2015 for NEVs (excluding PHEVs). That figure will rise to 60,000 plates annually in 2016 and 2017. In Shanghai, NEVs may receive a special license plate free of charge, while in Tianjin, Guangzhou and Hangzhou, NEVs may be purchased directly without going through the lottery or auction system.
- Apart from the said seven cities, among cities which are rumored to introduce registration restriction when ownership volume surpassed 2 million units. The seven cities introduced restrictions after ownership volume exceeded 2 million units, Moreover, Taiyuan intends to limit ownership volume to 1.1 million units by the end of 2015; however, volume already stood at 895,000 units in 2013 and the increase for the following two years was expected to exceed 205,000 units; therefore, the city may have to launch its own registration restriction as well.
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