The extra quota for new small cars in Guangzhou will increase from 30,000 to 80,000, and Shenzhen will remove the requirement that consumers who buy NEVs pay social security locally.

(Image credit: CnEVPost)

Guangdong province in southern China plans to gradually ease car license quota restrictions in Guangzhou and Shenzhen to unlock consumer demand, according to a new government document.

The plan was mentioned in an initiative to boost local consumption released today by the Guangdong provincial government.

The province will vigorously promote energy-efficient and new energy vehicles (NEVs), and Guangzhou will add 80,000 extra new energy-efficient small car quotas in 2021-2022, according to the document.

Earlier this year, Guangdong released a plan to increase that quota by 30,000.

Shenzhen will further relax the application requirements for new energy small cars and remove the requirement for buyers to pay social security locally to promote sales of new energy small cars, according to the document.

The province will improve the layout of auto sales outlets, encourage new energy vehicles and high-end imported car outlets to enter core business districts, and guide auto production and operation companies to enter third- and fourth-tier city markets.

XPeng has more owners in Shanghai than in Guangzhou, where it is headquartered