China, less restrictions on car purchases

30/08/2019

 

The easing would mark a significant change in the policy for the largest automotive market in the world

 

In China, it will be easier to buy a car. In fact, to give a new force to the sale of cars, which fell for the 13th consecutive month in July, China has decided to ease the restrictions on all car purchases.

Furthermore, this easing would mark a significant change in economic policy for the largest automotive market in the world. The government, in fact, could try to help the automotive sector in crisis and give a strong boost to the economy. The choice was made even if this could hinder the progress of environmental protection.

According to data from the Ministry of Transport, in fact, internal combustion engine cars currently constitute almost all the engines on China’s roads. Only 1% of the 320 million total vehicles are electric, compared to last year. Last year, according to Chinese media reports, vehicle emissions made up about half of air pollutants in cities like Beijing and Shenzhen.

 

This year the Chinese economy has been hit hard by the US trade dispute

 

The State Council has urged local governments to “unleash the potential” of car consumption. The rule is part of a broader political package to increase consumption to compensate for the negative impacts of “multiple unfavorable factors at home and abroad”.

This year the Chinese economy has indeed been hit hard by the intensification of the trade dispute with the United States. Economic growth slowed to 6.2% in the second quarter, the lowest level since 1991.

Currently, eight cities adopt restrictive policies on car purchases, including Beijing, Shanghai and Hangzhou. The local authorities in Guangzhou and Shenzhen have already agreed in June to increase their common quota by around 180,000 within two years.

 

 

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