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Xinhua: Guangzhou Limits the Number of New Car Registrations

On June 30, 2012, Xinhua reported that the government of the city of Guangzhou (the capital of Guangdong Province) initiated new limits on the number of cars that could be registered. The city government announced at around 9:00 pm that the new policy would become effective in just 3 hours. The policy imposed a monthly quota on new car registrations. The purpose of the new policy is to control the city’s growing problems of traffic jams and air pollution. The quota is expected to have a significant impact on car sales in the local market. That same night, people formed long lines outside of many car dealerships waiting to buy cars before the new policy took effect. The government has not yet decided on the actual numbers for the quotas for the coming months. All car dealers immediately cancelled all promotions and discounts. Many local residents expressed concern about how the city government implemented this new policy. Most people who the media interviewed said hearings should be held before important decisions like this are made. Other large cities in China such as Beijing and Shanghai already have similar government imposed limitations for car registrations.
Source: Xinhua, June 30, 2012