Capital cuts new cars

Advertisement above a Beijing car sales and service shop open late into the night of Dec 23 warns that city government restrictions on new car registration will take effect the following day. Just 240,000 new cars will be allowed in 2011 due to rising traffic congestion in the capital. [Asianewsphoto]

The Beijing municipal government on Dec 23 released new measures to sharply reduce new vehicle registration in a move to ease worsening traffic congestion in the city.

Only 240,000 vehicles will be registered next year in Beijing, in comparison with more than 800,000 cars sold in the capital city this year.

Analysts said that auto market in the whole country will be affected if other medium and large cities follow Beijing and implement similar rules.

Another factor to impact the market is expiry of the nation's tax rebate next year.

Anticipating the new policy, Beijing citizens rushed to buy cars and apply for license plates in the past few days.

Local press reported that a record high of 9,000 vehicles were registered on a single day on Dec 23, bringing the total number of vehicles registered in Beijing to 4.8 million.