China: city of Shenzhen also imposes car sales gap image

China’s southern city of Shenzhen recently announced it had decided to put a cap on new car deliveries, the latest municipality to join other major Chinese cities that enforce such bans to fight off pollution and congestion.

The major metropolis that so far imposed restrictions on the amount of new car registrations includes Shanghai and Beijing, as China – including the central government – has declared war on the escalating dangers coming from smog and increased traffic. China, the world’s largest auto market, now has automakers worried after the later part of the year signaled towards a slowing sales pace and more cities joining the large metropolis might put even more pressure on the foreign brands such as General Motors and Volkswagen AG. Now, the automakers that count on China as their largest market need to focus on expanding towards new Chinese territories, such as the less affluent, but also less crowded western cities.

According to the official microblog of the government of Shenzhen the city would restrict the number of new vehicles to be registered to just 100,000 units per year. Shenzhen is the latest Chinese city to cap sales, after earlier this year Hangzhou, a city in eastern China, near Shanghai joined the likes of Shanghai, Beijing, Tianjin, Guangzhou and Guiyang.

Via Reuters