The "Wall Street Journal" recently commented that more and more cities in China have adopted restrictive licensing policies to limit the rapid expansion of the auto market in order to cope with air pollution and road congestion problems, but the increase in the cost of supporting vehicles has led consumers to shift more to large displacements. High-priced cars have an impact on self-owned brands; overseas industry professionals recommend that limit cards should be combined with restrictions on travel.

Limit licensing to produce large car demand
The Wall Street Journal commented on "China's Car Curbs Spur Bigger Purchases" (China's auto purchase restrictions spur consumers to buy large cars). The article pointed out that in order to reduce automobile sales and ease air pollution and traffic congestion, more Chinese cities have joined the ranks of restricted purchases, among which the limited licence has become one of the typical means; taking Shanghai as an example, the number of auctioned license plates per month is between 9,000 and 10,000. The average price was RMB 82,000.

In addition to Beijing, Shanghai, Guangzhou and Guiyang, there are eight major cities that may join the ranks in the future.

The article quoted car dealers and analysts commenting that the scarcity of license plates will increase the cost of the car. The buyer may therefore be willing to pay more for the car itself and instead buy a large car equipped with a large displacement engine and believes that the restriction measures Or will force it to purchase high-end cars in advance. A dealer said that more and more first-time car buyers tend to buy SUVs and luxury cars.

A consumer was taken as an example. He originally observed a series of relatively low-priced models, including domestic Volkswagen brand cars, but in June this year he eventually chose the Audi A4 with a price of RMB 300,000.

According to data from the China Automobile Association, since 2011, the average selling price of new cars in Beijing has surged by 88%, while the market share of cars with engines exceeding 1.6 liters has increased by 17% over the same period. CAAC predicts that the eight-city limit purchase policy may lead to an annual reduction of 400,000 vehicles sales, which is close to 2% of total sales in 2012.

Independent brand pressure

The restrictive licensing policy may allow car buyers to abandon low-priced brands, especially Chinese indigenous brands. At present, self-owned brands mainly produce and sell low-cost automobiles, and under the influence of limited licenses, they may face more pressure for sales to decline.

Overseas car companies have not paid much attention to China's purchase restriction policies. Audi spokesman Martin Kuehl said that restricting the policy is equal to encouraging car consumption. Bob Socia, president of GM China, described: “Will you buy a 100,000 yuan license plate for a 50,000 yuan car?” It expects that even if the 25 most congested cities in China are restricted in 2015, they The impact of sales in China is only between 2% and 3% at most.

Some independent brands have expressed eager attention to restrictions and other measures, and they may have a greater impact on sales.

Industry Proposal Limiting Combination Limit Line

Benyam Reja, the coordinator of the World Bank’s transport sector in China, said that the Chinese government’s recent efforts to limit congestion and pollution have been a “good first step”.

However, Reja believes that in the long run, more "comprehensive policies" are needed, including the collection of fees for vehicles heading for the urban areas during traffic peak hours, and the combination of restricted lines and restricted purchase restrictions. It explained: "Because having a car doesn't mean you have to use it."