Car sales may shrink by $9b in Beijing due to curbs

Sales revenue of Beijing's auto market this year might shrink by 60 billion yuan (about USD 9.1 billion) due to the new measures limiting the number of cars purchased each month.

Car sales revenue will drop to 100 billion yuan (USD 15 billion) in 2011 from last year's 160 billion Yuan (USD 24 billion), Wang Shuxia, chief for marketing section with the Beijing Municipal Commission of Commerce, was quoted as saying by the official media here.

A control on car purchases introduced this year limits new car license plates to 240,000 in 2011.

In 2010, more than 800,000 new cars drove onto Beijing's roads, worsening the chronic gridlock in the capital of nearly 5 million automobiles.

Wang estimated that Beijing's car sales this year will hit 580,000 units, as some cars will be sold to buyers outside Beijing while others will be purchased by buyers who are replacing older cars.

Car owners who replace their old vehicles can obtain car license plates directly without taking part in the lottery that allots 20,000 new plates each month.

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