More Chinese cities to limit car purchases to fight pollution
More cities to introduce restrictions on purchases, says China Association of Automobile Manufacturers
China is poised to widen the number of cities curbing vehicle purchases to counter worsening pollution and congestion, which would undermine car deliveries, the nation's biggest car association said.
Eight cities - Chengdu, Chongqing, Hangzhou, Qingdao, Shenzhen, Shijiazhuang, Tianjin and Wuhan - would probably introduce measures limiting car purchases, Shi Jianhua, deputy secretary general of the China Association of Automobile Manufacturers, said yesterday. The state-backed group was opposed to the restrictions, Shi said.
A lot of dealers are urged to clean the inventory of the old models. That's why they give a little bit bigger discounts to drive the sales
Such limitations could cut vehicle deliveries by 400,000 units, or 2 per cent of nationwide sales, and undermine economic growth, Shi said. If introduced, the measures may triple the number of Chinese cities - Beijing and Shanghai have vehicle quotas - imposing curbs on cars as public anger grows over worsening congestion and air pollution.
Shijiazhuang, one of the mainland's most polluted cities, proposed limiting vehicle ownership through a lottery, according to a Shijiazhuang Daily report on the local government's website last month.
The eastern province of Zhejiang held discussions last month to limit the number of new vehicles in the provincial capital of Hangzhou and Xian discussed limiting vehicle ownership last year.
Meanwhile, passenger-vehicle sales rose 9.3 per cent in June after dealers increased discounts to clear stock and meet half-year targets amid a cash crunch and concerns the economy is slowing.
Wholesale deliveries of cars, multi-purpose and sport utility vehicles climbed to 1.4 million units last month from 1.28 million units a year earlier, the association said.