China to Add More Cities That Limits Vehicle Purchases

China to Add More Cities That Limits Vehicle PurchasesTo further fight pollution and congestion in the country,China is planning to widen the number of cities that curbs vehicle purchases that will under mine car deliveries. According to Shi Jianhua the deputy secretary general of the China Association of Automobile Manufacturers that eight cities namely Chongqing, Chengdu, Qingdao, Hangzhou, Tianjin, Shijiazhuang, Wuhan and Shenzhen will introduce measure that will limit car purchases.

But a State backed group is opposing the restrictions saying such limitations will cut vehicle deliveries around 400,000 units which is 2 percent of nationwide sales that will undermine economic growth. As of the moment only Beijing, Guangzhou and Shanghai are implementing vehicle quotas and imposing curbs as the public anger grows due to the air pollution and worsening condition. Shijiazhuang one of the most polluted cities in China proposed limiting vehicle ownership by lottery. And last month the eastern province of Zhejinghad discussions on limiting the number of vehicles in the provincial capital of Hangzhou,

Even with the plans of limiting vehicle ownership passenger vehicle sales have increased by more than 9 percent in June when dealers started offering increased discounts to clear stock and to meet their half year target.

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