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Guangzhou (CNS) -- The city of Guangzhou released its car purchase limit policy on Saturday evening stating that as of Sunday and for the pilot phase of one year, the city will only allow the purchase of 120,000 small and mid-sized vehicles.

No registration or title transfer services for small and mid-sized vehicles will be offered in July, and the quotas and procedure for the rest of the year will be released by late this month.

Guangzhou now has more than 16 million residents with 2.405 vehicles. The number is growing by 19 percent every year, yet fewer than a third have designated parking spots.

The news has heated up the local car market. Race Course Car City saw potential buyers lined up to empty lots where unsold cars are stored. Most of its 4S shops have canceled precious purchase privileges due to a shortage of storage space.

What was actually a depressed car market in Guangzhou during the first half of this year is definitely confronted with even dropping sales in the second half, noted car company manager Wu Sike.

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