As one of the cities with the largest number of cars, Shanghai's policy has a significant impact on the auto market. The city has extended its current policy of issuing free new energy vehicle plates as it expires in a few days.
The Shanghai Municipal Development and Reform Commission said today that from Jan 1, 2021, to Feb 28, 2021, it will continue to issue free special license plates for new energy vehicles.
Consumers who purchase a new energy vehicle for non-operating use in Shanghai within the period can follow the previous procedures to apply for one.
Car licenses are a scarce resource in Shanghai, and individuals who wish to obtain a gasoline car license will need to participate in a monthly auction. The current price of a gasoline license plate is around RMB 90,000, with 220,000 people competing for 13,500 plates this month.
For new energy vehicles, the current policy is that individuals can apply directly for a free license plate as long as they meet the requirements. But it is tied to the vehicle, and the license plate cannot continue to be used when the vehicle is scrapped or sold.
On October 24, the Shanghai Municipal Public Security Bureau announced that from November 2, 2020, from 07:00 to 20:00 daily, some elevated roads in Shanghai will be closed to the passage of cars with license plates from other provinces and cities, except on Saturdays, Sundays and public holidays.
Starting from the first working day after the May 1, 2021 holiday, from 7:00 to 10:00 and from 16:00 to 19:00, cars with license plates from other provinces and cities are prohibited to pass on the roads within the inner ring road, except on Saturdays, Sundays and public holidays.
According to Essence Securities, the restriction on vehicles from other provinces and cities, while the sale of fuel vehicles is restricted by the license plate auction, is good for the electric vehicle industry.
After the policy change, a large number of users start to consider buying new energy vehicles to get a local license plate, especially those from Tesla, Nio, and Xpeng.
In a field visit, Shanghai Securities News showed what it's like at the Tesla, Nio, Xpeng stores, and the changing views of Chinese car owners on new energy vehicles.
The Shanghai Securities News reporter first came to the Tesla store in TaiKoo Hui, where the small L-shaped showroom was filled with customers standing and sitting for inquiries and orders, as well as four prototype cars on display.
On the 2nd floor of the Nio store, less than 50 meters from the Tesla store, the bar and sofas and other lounge spaces were also full of people.
