Number Plates News

China Holds First Plate Lottery

26 January 2011

Drastic action has been taken by the authorities in China in an attempt to deal with the appalling traffic congestion in its major cities. Motorists in the capital, Beijing, have been forced to take part in a lottery for places on the packed roads.

Just 17,600 new licence plates were issued recently, in response to over 210,000 applications. 90% of these went to residents, with the remainder being allocated to local businesses. Only vehicles bearing native Beijing plates will be permitted on the city's streets during peak periods.

There are currently a staggering 4.8 million vehicles fighting for places on the often gridlocked roads. The new rules will limit the number of new registrations to 240,000 this year, compared to the massive 800,000 issued over the preceding 12 months.

The plate lottery, which became a major media event with a live broadcast on television and the internet, was chosen as a fairer alternative to an auction. However, there is nothing to prevent wealthier motorists from buying an allocated plate privately for hard cash.

Incredibly, the nation's auto market, the largest in the world, seems to be unaffected so far by the restrictions and grew by more than 30% last year. However, executives from the major manufacturers are becoming increasingly concerned by the impact the restrictions may have in the longer term.