Guangdong’s move to ease limits, boost China’s car sales met with scepticism by analysts and residents
- Guangzhou’s quota will be increased by 100,000 and Shenzhen’s by 80,000, but move ‘will serve as short-term stimulus’ in efforts to offset US-China trade war
- Move follows stimulus plan by National Development and Reform Commission to bolster demand for cars and electronics
Plans by China’s most prosperous province of Guangdong to ease restrictions on car sales in a bid to boost domestic consumption have been met with scepticism by analysts and residents due to a perceived reluctance by consumers to spend due to uncertainties over the economic outlook.
The southern province that is home to much of China’s export and hi-tech manufacturing will increase the annual car sales quota by 100,000 in the provincial capital of Guangzhou and by 80,000 in the southern technology hub of Shenzhen.
It is the first time any of China’s biggest cities have relaxed the increasingly common policy used to control congestion and pollution.
But “[the move] will serve as short-term stimulus,” said Angus Chan of Bocom International Holdings. “It’s not just about sales, [currently] the entire supply chain is affected.”
[The move] will serve as short-term stimulus. It’s not just about sales, [currently] the entire supply chain is affected
Huang Jiayu, a local Guangzhou resident, said his friends have been delaying their car purchases due to the high price.
