Guangzhou officials capped registrations for all and medium-sized vehicles at 120,000 new license plates per year, or 10,000 per month, to control vehicle numbers in the heavily industrial city, the city's government announced on June 30.
According to Ministry of Public Security officials, medium-sized vehicles have a capacity of nine to 20 people. all passenger vehicles are those holding no more than nine passengers. Individuals or entities that purchase vehicles, including second-hand and city vehicles, need to apply for eligibility from local authorities, according to officials from the Guangzhou Transport Commission.
Individuals and entities who signed purchase contracts and paid a deposit before July 1 are exempt from the new regulations but will need to get a notarized certificate that verifies their transactions.
Guangzhou had 2.4 million registered vehicles in May, a total that has seen a yearly growth of 19 percent in the past five years. The increase in vehicles has reduced the average speed on city roads during rush hours to 20 kilometers per hour. The city is also facing a shortage of parking places, with one spot for every 3.3 cars, said local transportation officials.
Guangzhou is the third city in the nation that has taken measures to control the rising number of vehicles. Beijing capped registrations at 20,000 vehicles a month from January 1, 2011, while Shanghai controlled growth by charging new fees for license plates.