(Yicai Global) June 2 -- China's southernmost tier-one cities of Guangzhou and Shenzhen will add 100,000 and 80,000 car licenses, respectively, from June to December next year, according to statements from local authorities.
Shenzhen will provide 20,000 via license lottery and the remaining 60,000 will come via bidding concerning automobiles that meet China's Phase 4 national emission standard. The additions raise the city's total quota to 120,000.
Half of the 100,000 new plates in Guangzhou will come via bidding and half will come through lottery.
The two cities began to limit excessive growth of automobile inventories via a license plate quota in 2012 and 2014, respectively. Consumers must apply for local plates by a lottery system or auction. The pair are the first to loosen restrictions and other cities could follow suit.
Chinese car sales have fallen on an annual basis for 10 straight months as of the end of April. The new policies will lower barriers to acquiring plates and simplify second-hand trading procedures, which will spur on consumers to replace their old cars and drive new sales.