Another Chinese City Imposed Vehicle Quotas image

Shijiazhuang, one of the most polluted cities in China, announced it will limit vehicle ownership, as traffic congestion and the air quality keep getting worse.

Shijiazhuang, which is the capital of the Hebei province, which manufactures steel, decided to restrict the number of new vehicles this year to 100,000 and also impose households to have maximum two cars each. The number of vehicles will be reduced to 90,000 units by 2015 and a lottery will be used to decide who will be allowed to buy vehicles.

China promised to find solutions to reduce CO2 emissions after the worsening congestion and air pollution attracted the public anger. Other cities in China which imposed vehicle quotas are Guangzhou, Shanghai, Guiyang and Beijing. The Ministry of Environmental Protection in China published a report with the 10 most polluted cities, the result was unchanged compared with the first quarter.

“In the mid to longer term, there is higher likelihood we’ll see more and more cities imposing registration limitations,” said Klaus Paur, Shanghai-based global head of automotive coverage at researcher Ipsos. “The auto industry contributes a lot to development so there’s a trade-off to be made by each government, saying how much do I want my city to develop.”

Source: Bloomberg