Demand for car license plate rallies in Shanghai

THE cost of car license plates in Shanghai rebounded at auction Saturday after a sharp decline last month.

Dealers said hikes in both the average and lowest bidding prices reflected less quota and higher demand for vehicles as a result of big discounts on car prices and falling fuel prices.

The average price for a car plate rose by 7,314 yuan (US$1,069) to 31,665 yuan from November's average while the lowest price increased 9,200 yuan to 31,000 yuan, the monthly auction organizer said on Dec. 20.

The number of 4,500 car plates available for sale this month was 1,000 less than November but the auction attracted 16,801 bidders, 5,000 more than last month.

"Many people dropped their bids because prices fell to their second lowest level of the year last month," said Zhu Junyi, an auto researcher.

"In addition, big discounts on car prices and fuel price relief play active roles in boosting vehicle sales so the demand for car plates gets heated," he added.

Massive price discounts are being offered on cars in anticipation of Chinese New Year sales, ranging from luxury sedans to compacts. The price of a BMW 5 Series sedan has been cut by 77,600 yuan to 444,000 yuan in Shanghai and 15 percent cuts are common on other brands.