BMW Brilliance Zinoro 1E

BMW Brilliance Zinoro 1E

Before the end of the year 2014, Shenzhen introduced a new policy that restricts car purchases by requiring prospective buyers to acquire a new license plates through lotteries or at auctions.

Shenzhen is last in the line of major Chinese cities Beijing, Shanghai, Guangzhou, Guiyang, Shijiazhuang, Tianjin and Hangzhou to fight the flood of cars.

In the last five years, the average increase of car sales in Shenzhen was 16% reaching 550,000 registered in 2014 and 3.14 million cumulatively by December 2014. The city struggles to find parking for all of these cars and has difficulty managing traffic jams and air pollution.

"The number of vehicles has created severe traffic congestion and parking space shortages in the city, where drivers have to compete for the existing 1.04 million parking spots."

"Lastly, it has contributed to the city's deteriorating air quality, as exhaust from automobiles was responsible for 41 percent of smog, according to official statistics, causing the city's PM2.5 index to exceed a safe limit."

Shenzhen will now not only limit sales to 100,000 a year, but also try to force new buyers to choose electric cars.

20,000 or 20% of the license plates will be slated for electric vehicles.  This is just one city.  Plug-in electric car sales for the whole of China in 11 months of 2014 was 56,700. Sales in 2015 should be extraordinary if all of the incentives and regulations are effective.

"Meanwhile, vehicles registered outside of Shenzhen will be banned from running in Futian, Luohu, Nanshan and Yantian districts during rush hour - from 7 a.m. to 9 a.m. and from 5:30 p.m. to 7:30 p.m. on workdays - except on designated roads leading to the checkpoints in the four districts.

The restriction doesn't apply during weekends and holidays.

Emergency vehicles, such as fire engines, military vehicles and police cars, as well as vehicles with dual license plates for Hong Kong and Macao, are not subject to the limitation.

Drivers of vehicles bearing non-Shenzhen plates won't be fined for their first violation of the regulation in the one-month grace period after the regulation takes effect."

Source: Shenzhen Municipal E-government Resources Center