Government Pollution Rules may Impact China’s Car Sales

China’s booming car sales could take a hit this year as the government steps up its battle against pollution.

The Chinese government is limiting the number of new vehicle registrations in many major cities this year in hopes of clearing the country’s thick, smoggy air. Sales in the largest cities could be limited to 300,000, while a limited number of smaller cities will have caps closer to 25,000. On top of that, a group of cities are even banning some cars from the streets on certain days to lighten traffic and decrease pollution.

Auto companies have in recent years expanded rapidly in China, where growing demand and rising wages have fueled a car-buying boom. China is now the world’s largest car market, cementing the country’s status as a top destination for automakers. But now, the government’s new rules are expected to dampen China’s auto-spending spree.


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