Advertisement
BusinessCompanies

More Chinese cities to curb car sales to tackle pollution

New Chinese leadership under President Xi Jinping is emphasising need to improve quality of life, but air pollution remains a major problem

2-MIN READ2-MIN
A BMW factory in Shenyang. Photo: Reuters
Reuters

Eight more cities in China, the world’s biggest automotive market, are likely to announce policies restricting new vehicle purchases, an official at the automakers association said, as Beijing tries to control air pollution.

Shi Jianhua, deputy secretary general at the China Association of Automobile Manufacturers (CAAM), did not give details on the new measures and there has been no word from the government.

But the industry group warned the planned restrictions could cut vehicle sales by 400,000 units, equivalent to 2 per cent of annual domestic sales last year.

We shouldn’t simply adopt restrictive policies as they have seriously dampened demand of the people

“We shouldn’t simply adopt restrictive policies as they have seriously dampened demand of the people,” Shi told a news conference on Wednesday.

Advertisement

“It’s not good for the healthy development of the Chinese auto industry or the formation of an harmonious auto society.”

In June, sales of German cars accounted for 26 per cent of total sales in China, followed by Chinese vehicles at 25 per cent, Japanese with 18 per cent and US cars with 16 per cent, according to CAAM data.

Advertisement

Four Chinese cities - Beijing, Shanghai, Guiyang and Guangzhou - already restrict vehicles on the road by using auctions and lotteries to sell a limited number of licence plates.

The new curbs will likely include major provincial centres like Chengdu, Chongqing and Wuhan, Shi said.

Advertisement
Select Voice
Select Speed
1.00x