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    Shanghai car plate prices to remain high

    By Wu Ni in Shanghai | chinadaily.com.cn | Updated: 2013-02-19 17:47

    The average bid for an automobile license plate in Shanghai is expected to remain high at the monthly auction to be held on Saturday.

    A total of 9,000 auto plates will be up for auction, the same number as last month, according to Shanghai Commodity International Auction Co.

    The average plate price in January was 75,332 yuan ($12,070), almost 6,000 yuan more than the previous month and a record high for a seventh consecutive month, according to the auction company.

    Feng Shiming, an auto analyst of Menutor Consulting, expects the average plate price this month will be a little higher than in January.

    "China's auto sales rose 46 percent in January to a monthly record and Shanghai has played a big role, which means more car buyers will join the auction," he said.

    But the rise will not be dramatic because many car owners will buy plates from other provinces, mainly from Zhejiang and Jiangsu, as the city has no strict policy to limit car plates from other provinces, Feng said.

    Yao Ming, general manager of a Shanghai Volkswagen 4S store, estimates that the plate price will be more than 70,000 yuan, but does not believe it will be as high as in January.

    "In January, a lot of car buyers rush to bid for a plate so they can drive during the Spring Festival, which pushed the price to a peak," Yao said.

    A salesman surnamed Zhang from Shanghai Hongchi Auto Sales said the number of clients hiring the company to bid for a plate is less than last month.

    Secondhand car plates in Shanghai have reached about 81,000 yuan, the Shanghai-based Dragon TV reported.

    The city began auctioning auto plates in 2000 to control the number of cars, but prices keep rising.

    Last July, the municipal government extended the holding period for a plate from one year to three years, trying to curb speculative bidding. New energy vehicle buyers are offered plates for free.

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