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December 28, 2010

Beijing to Restrict Car Usage, Chinese Automakers Anticipate Market Downturn


Beijing is a city in crisis. It is, more or less, a microcosm of the world at large: smog and traffic congestion are choking China’s capital. This year, 4.7 million cars were sold in Beijing alone; nearly twice the number sold just five years ago. Despite a new subway system, the roads remain gridlocked, and the Beijing municipal government has had enough. From 2011, radical changes will be introduced to the city’s traffic and vehicle registration laws to make it the city that bit more livable.

This year, roughly 720,000 new vehicle registrations were issued for microvans and cars. In 2011, this number will be slashed to a third. Only registered Beijing residents will be able to purchase a license, and only Beijing registered vehicles will be allowed in the city during rush hour. Parking fees are also set to increase.

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