Shanghai car license plate costs on the rise

Strong demand among urbanites and regulations to ease congestion drive up prices

Getting a car license plate in Shanghai costs almost as much as buying an economy family car, and industry insiders predict prices will continue to rise.

The city's monthly number plate auction on Saturday saw a record-high average bid of 69,346 yuan ($11,000), up 3.58 percent from November, authorities said. The lowest transaction was 68,900 yuan, also a record.

The cost of the plate is roughly the same as the cost of a Yaris, one of Toyota best-selling family cars.

Winning bids in January's auction were about 53,195 yuan, a sum that has climbed throughout the year, with the exception of a slight drop in June and July.

A strong demand among urbanites to own a car, and government regulations to ease traffic congestion, are believed to be the two main drivers pushing up the price of the license plates.

"It's by far the most effective congestion charge," said Feng Shiming, an automobile market analyst, as he compared traffic jams in Shanghai with other Chinese cites such as Guangzhou and Beijing.

"To ease the problem of the growing number of vehicles on the roads and the limited traveling space through price restrictions may sound unfair, but it's better than the (lottery) system in Beijing, and has been proved effective," Feng said.

We Recommend:
China in 1942, a real history	'Devil' foreign instructors in China	Beautiful model at Guangzhou Auto Show
Nutritious lunch provided in Taipei	Photos of China 30 years ago	AK-47-equipped teacher creates buzz
Lunch in Beijing's primary schools	Say no to vicious cycle of ugliness appreciation	Challenges remain for smoking ban