After careful study, the government decided not to set up a car ownership certificate for private car recruitment, but to hand it over to the market for distribution.

Dr. Xu Lian-sung, the Ministry of Sustainable Development and Environment and Senior Minister of Transportation, explained the Ministry of Transportation’s position as he debated the Ministry of Transportation’s expenditure budget on Wednesday (March 5).

Xu Lianchun said that the demand for car ownership certificates for small and medium-sized car groups (Group A) and large and luxury car groups (Group B) mainly comes from local individual buyers, rather than private car catchers or car rental operators. Judging from the second round of bidding in February this year, private car recruitment accounts for 6% and 8% of the bids obtained by Group A and Group B respectively.

In addition, setting up a car ownership certificate for private car recruitment means that quotas must be withdrawn from Groups A and Groups B. However, she stressed that it is very difficult to accurately determine how many vehicle ownership quotas are provided for private car hikes to meet the needs of drivers and passengers. “We are seeing private car-hailing demand changing quarterly because of the high sensitivity of fares and driver supply to passenger demand.”

Xu Lianzhuo said that if too many quotas are taken, the prices of car ownership certificates in Group A and Group B will soar due to insufficient quotas. On the contrary, it will lead to higher prices of car owner licenses for private car hikes, and drivers and passengers face higher rents and fares.

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“Therefore, the allocation of car ownership certificates for private car hikes and private car is best left to the market to decide.”

She proposed that what the Land Transportation Bureau will continue to do is to continue to increase the quotas for Group A, Group B, and truck and bus groups (Group C) in each quarter by allocating vehicle ownership certificates in advance and injecting an additional 20,000 vehicle ownership certificates in the future, until the peak supply starts in 2026.