New permit rules for the southern Chinese city of Guangzhou went into effect Sunday as part of efforts by the city authorities to reduce both traffic jams and air pollution, the state-owned news agency Xinhua reported.
The rules announced Saturday allow only 120,000 passenger vehicles to be registered over a one-year trial period, during which only 10,000 licences will be handed out each month.
Car registrations had recently reached around 31,000 per month according to local media.
The city government said it will release a more detailed car quota plan by the end of July. Greater Guangzhou, home to between 12 and 16 million people, is the third Chinese city to cap small passenger vehicle registrations after Beijing and Guiyang.