Local governments in Shanghai, Guangzhou and Guiyang last year carried out curbing policies on car purchases, similar to ones initiated in Beijing in 2011 and carried on in 2012.
Statistics showed that total sales in Beijing of 12 popular domestic brands, including Chery, BYD and Geely, fell to barely 26,000 units in the first five months of 2012, down from 118,000 units in 2010, China Business News reported December 27.
Beijing Municipal Commission of Transport said December 13 that it would sustain the car plate limits this year, causing some people to complain that their reasonable car-buying demand had been suppressed.
Beijing's monthly quota for individuals' new car plates is 17,600, while roughly 1.33 million Beijingers joined the latest monthly round of car plate applications on December 26, 2012.
Meanwhile, the pressures on dealers for 2012 also came from expectations in 2009, when auto makers were excited about the high growth potential in the Chinese market and went on to invest in additional factory construction in the country.
The newly built capacity began to be used in 2012, increasing the supply at a time when buyers' enthusiasm was curbed, he said.
According to the China Association of Automobile Manufacturers (CAAM), China sold 17.5 million vehicles in the first 11 months of 2012, up by 4 percent year-on-year, and the association said the figure for 2012 would be over 19 million units.
However, the total annual capacity of domestic carmakers is expected to exceed 40 million units by 2015, Luo said.
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