Plates consisting of six English letters and numbers will replace the existing five digit number system, increasing the total number of vehicle registrations available.

But what is expected to make the new system appealing to car owners is an ability to choose personalized plate numbers, as long as they have not already been taken.

A Ministry of Public Security official said the system was being considered because of the booming number of car sales in recent years.

Market statistics show the move is necessary - the number of new cars sold in Beijing in the first six months of the year was 30 per cent up on the same time last year and nine out of 10 new cars were bought by individuals.

And the demand is not expected to ease with experts predicting a 20 per cent annual growth rate over the next five to 10 years.

Seen as an important spark for economic growth, vehicle ownership has been increasingly encouraged by the State.

The new licensing system allows for further growth in the market by creating a stream-lined process.

However, it is only seen as the beginning as motorists and people wanting to buy a vehicle have more pressing needs than choosing a lucky licence plate number.

After a hot rumor about a dramatic reduction in prices at the beginning of the year, consumers have only been offered marginal cuts by domestic manufacturers.

In some cities, a private car owner still has to pay an additional 10-15 per cent of the vehicle's price in taxes and fees.

Buying cars on credit in many cities is also inconvenient because of troublesome procedures.

Much effort has to be devoted to improving the overall process so consumers sustain the growth in vehicle sales.

(China Daily August 8, 2002)