China Brands Hurt by Plate Auctions to Foreign Benefit
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Shanghai’s busy streets teem with Buicks, Fords, Volkswagens, and Toyotas. But good luck finding a Chery, Geely or Great Wall.
More than 9 in 10 cars in Shanghai are foreign brands, and some local automakers say the city’s license plate auctions are responsible for their weakness. Shanghai is one of four Chinese cities that limit car purchases by imposing quotas on registrations. The prices paid at Shanghai’s auctions in recent months -- 90,000-yuan ($14,530) -- have exceeed the cost of many entry-level cars, the stronghold of Chinese brands.