Focus on Arts and Ecology

August 23-29, 2019

Amid a slowing economy, the State Council has said local governments should gradually ease or cancel limits on buying new vehicles, whether powered by internal combustion engines or electricity.

Cars and trucks are a major source of pollution in China, contributing as much as 50% of air pollutants in cities like Beijing. In recent years, Beijing, Tianjin, Shanghai, Hangzhou, Guangzhou, Shenzhen and other metropolises have tried to slow the rise in vehicles by allocating a limited number of new license plates by lottery. Beijing, with its 22 million people, aims to cap licensed vehicles at 6.3 million by the end of 2020, according to Bloomberg. 

However, those policies are now confronted with an economy in need of a boost. As the world’s largest car market, China has seen 13 consecutive months of declining car sales since July 2018. The China Association of Automobile Manufacturers estimates the industry will end the year with sales 5% lower than last. 

Those cities with license plate quotas account for about half of electric vehicle purchases in China. Back in June, the central government warned local authorities not to restrict the purchase of such vehicles. The State Council’s announcement can be seen as a call from central government to unleash the country’s car market potential.

Read more about China’s new energy vehicles ambitions here