Caixin
Apr 10, 2020 08:09 PM
BUSINESS & TECH

Guangzhou Accelerates Issuance of License Plates

What’s new: Guangzhou, capital of South China’s Guangdong province, will give out 17,089 license plates this April, up almost 70% over the previous month. About half will be sold at auction, and the rest will be assigned by lottery, according to an announcement by the municipal government on Wednesday.

The city also scrapped a requirement for applicants without local household registrations to prove they’ve paid into local medical insurance for 24 months as proof they have lived and worked in the city for at least two years.

“Dropping the requirement can prompt more people to join the bidding, but it’s hard to predict how many people will actually take action,” said an employee at Guangzhou Municipal Transportation Bureau.

What’s the background: In the first three months of 2020, Guangzhou has put up an average of 3,600 license plates for auction each month, with more than 10,000 bidders.

While the price of the average successful bid rose 15% between January and March to 18,495 yuan ($2630) the number of bidders declined by 20% over the same period. The odds of winning a plate by lottery were approximately 0.6% in 2019.

Increasing the number of license plates is only part of the local government’s attempts to boost ailing demand for cars. They have also pledged to provide 450 million yuan in car replacement subsidies this year, and if a manufacturer subsidizes a consumer’s purchase of a license plate by 10,000 yuan, the company will receive 5,000 yuan from the municipal finance ministry.

Quick Takes are condensed versions of China-related stories for fast news you can use.

Related: Subsidies to Boost Car Sales Go into Overdrive

Contact reporter Lu Yutong (yutonglu@caixin.com) and editor Marcus Ryder (marcusryder@caixin.com)

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