It seems like the prices for new car license plates in Shanghai continue to drop for the third straight month. This after hitting a record high average price in March where the average price for a new car license plate ended at over 90.000 RMB ($15.000).
In the latest monthly auction that was concluded this Saturday the average bid for a new car license plat ended up at just under 78.000 RMB. This was almost 3000 RMB lower than the May average price which was over 80.000 RMB. This according to latest official data from the Shanghai government. The lowest bid in the month of June was 77.600 RMB while the lowest bid in May was 3.100 RMB higher.
new car license plates in shanghai
In total for the month of June Shanghai issued 9000 new car license plates, the same amount of new car license plates that was issued in the month of May. The government in Shanghai has tried to reduce the heavy increase in price for a new car license plate by offering more new license plates every month and also by tightening the auction transfer process.
Compared to prices in 2011 there has been a large increase in the cost for a new car license plate and for most people the cost of 80.000 RMB is really high. The demand for private cars in Shanghai has increased heavily in the last few years even though the Shanghai government has tried to improve the public transportation and put restrictions on who can get a new car.
Chine which is the worlds largest market for cars has heavy problems with traffic and gridlock that occurs in the cities during rush hours. Becuase of this the government in Shanghai has heavily tried to reduce the amount of traffic within the city center.
Shanghai is also the only Chinese city that uses an auction system to control license plate distribution. Cities like Beijing are using a lottery system to distribute plates among car owners.
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