License Plate Auction Sets New Record in Price
Driving around Shenzhen is becoming more expensive as a recent license plate auction set a record average price of more than 30,000 yuan. The license plate auction is part of the government’s limit in the number of new cars that are allowed to be registered in the city.
In a sixth round of license plate auction that was held in the city by the city’s vehicle control management center there were over 230,000 residents applying for the 2,937 private plates that was available online but only 1.2 percent will be getting a plate. The center was offering 4,626 license plates during the auction which includes 2,937 plated for individual applicants and 1,689plates for corporate.
At 11 am Monday the center released the initial bidding date which had an average bid of 18,143 yuan for private car plates that is higher than the lowest trading price of 17,8000 yuan during the last auction. Final bidding might stand at 23,000 yuan as bids were slowly increasing. The auction ended at 3 pm with the average winning bid for private license plates at 31,805 yuan the highest record since the first round of auction with the lowest bid at 29,100 yuan.
The demand for license plated came after the auto show that was held last month in Shenzhen with around 30,000 new vehicles sold. Some of the buyers rather have themselves bid for available license plates rather than wait for the free lottery of the city government. In July the private cars market saw a rapid growth and an increase in car owners pushed the bidding prices higher.