Economics
Carmakers Seen Winning Reprieve From China Quotas on Growth Push
- Local governments count on vehicle sales to boost economy
- Total passenger vehicle sales may rise 10% annually by 2020
China Relies on Autos for Growth
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China will probably avoid extending restrictions on vehicle purchases to smaller cities as the government relies on the world’s largest auto market to sustain economic growth, according to a top industry association.
Seven cities in China, including Beijing, Shanghai, Guangzhou and Shenzhen, have capped the number of new license plates issued each year in an attempt to control the growth in the vehicle population. Local media reports have speculated on impending restrictions in cities such as Wuhan and Jinan given worsening traffic and air pollution.