HANGZHOU, Zhejiang – Dealers started to offer subsidies to car license plate applicants in Hangzhou, Zhejiang Province, in an attempt to attract potential car buyers after the city implements the car ownership restriction policy this year, reported National Business Daily.
Hangzhou provided 6,666 car license plates in May, including 5,866 for private buyers and 800 for institutes and businesses (including lottery and bidding). Less than 2.5 percent of the 242,306 applicants were able to get a license plate in the first round of application. The proportion is lower than the previously estimated 21 percent, posing a great challenge to local car dealers.
“We are more concerned about the proportion,” said an FAW-Mazda dealer. “Several customers are interested in the Atenza, but they have not placed orders because of worries about getting a license plate.”
The dealer decided to subsidize license plate applicants ¥30 ($5) per day (no more than ¥3,000 per person) to encourage them to order cars.
“We help customers, who seldom drive cars in downtown area of Hangzhou, get license plates of other cities free of charge. They can transfer their car registration information to Hangzhou when they get a local license plate,” added the dealer.
FAW-Toyota, Shanghai-Volkswagen and Infiniti dealers have also provided similar services to help vehicle sales.
Dealers in the city have given priority to trade-in business. “We have started to give more subsidies to trade-ins and reached long-term cooperative agreement with used car dealers,” said a Mercedes-Benz dealer. “Car trade-ins will become a growth driver of new car sales in the future.”