China’s capital, Beijing, has increased the quota for new energy vehicle number plates in an effort to boost domestic consumption following a call from top leaders to achieve economic targets. The city government plans to issue 20,000 new energy passenger car number plates for families. Other major Chinese cities have also implemented car purchase restrictions to ease congestion and reduce pollution using a lottery system to distribute quotas.
The move to stimulate consumption also involves relaxing original car-buying restrictions, according to Peng Peng of the Guangdong Society of Reform. With Beijing increasing its quota by 34%, the government aims to distribute 58,400 number plates annually for families. The State Council highlighted the importance of the automotive industry, which contributes significantly to retail sales, tax revenues, and urban employment in China.
Despite a prolonged downturn in domestic demand, measures like the trade-in scheme and subsidies for new energy vehicles are expected to boost consumer spending. The government is actively encouraging stimulating domestic consumption and driving exports and imports to support the economy.