As the dispute over Guangzhou's sudden limitation policy on car purchases in July continues, Xi'an has started to solicit public opinion on similar restrictions and locals have mixed reactions.
"As long as the public transportation can develop at the same pace, then it would also be a good thing. At least, I will need to force myself to walk more for exercise."
"We've paid for the entire year's car related taxes already. If they limit cars on the road, then it restricts our rights."
Xi'an expects to be the fifth city on the Chinese mainland to limit car purchases by clamping down on vehicle registrations. The others are Beijing, Shanghai, Guiyang, and Guangzhou.
Xi'an has 1.2 million vehicles, far fewer than Beijing's 4.7 million and Guangzhou's 2.4 million, ranking the tenth highest in China. Many car dealerships in Xi'an have increased prices by up to five to 10 thousand yuan due to panic purchase ahead of the expected car sales restriction.
One Xi'an dealership manager Yang Jiang says the pending policy is causing jitters in the local auto market.
"Before the policy is implemented, more people will come to buy, but as the policy is put into place, car sales will freeze."
Executive President of China Auto Industry Association Dong Yang says the limitation policies will definitely make a difference in the Chinese auto market.
"I think it's quite possible to see a chain-effect nationwide where many cities will imitate each other and adopt such policies. It'll make a huge impact on car sales. For example, Beijing alone has seen a reduced sales volume of 500 thousand cars since last year, a 3 percent drop in the local market."
The auto industry insiders say that more car manufacturers and dealers will focus on second and third tier cities where limitation policies are not in place. Analysts say that the Chinese auto market will still grow, but at a much slower pace than before.
For CRI, I'm Liu Min.
