Shanghai’s Electric Vehicle License Plate Policy Update
Local authorities in Shanghai have extended the practice of allocating free license plates to battery electric vehicles (BEVs) for an additional year beginning January 1st. The policy, designed to encourage the adoption of green vehicles and manage vehicle ownership to ease traffic congestion, now requires individuals to have made social security payments for a minimum of 36 months—increased from the prior requirement of 24 months—to qualify for the free electric vehicle license plates. This policy amendment was disclosed in a document published by the Shanghai Municipal Development and Reform Commission and four other governmental agencies. Stringent criteria have also been introduced for institutions seeking EV license plates, stipulating that enterprises must employ a minimum of five workers enrolled in the social security system or consistently pay taxes for over a year. Initiated in 1994, Shanghai’s approach to controlling gasoline vehicle sales includes a bidding system for license plates encompassing auctions and lotteries. This approach has been instrumental in elevating EV sales figures in the city, which reported upwards of 262,000 units sold in the first ten months of the current year, establishing Shanghai as the leading city for EV sales in China. [Shanghai gov announcement, in Chinese]