1. Dealing with Urban Mobility Challenges
What Can We Learn From China?
Xin Ding
Consulting Analyst, Frost & Sullivan
July 2014

2. 2
Current Challenges in China’s Urban Cities are Similar to the Concerns in
Europe
Parking
- Beijing: 5.3 mn
vehicles vs. 2.7 mn
parking slots
-Shanghai: 2.6 million
vehicles vs. 780, 000
parking slots
Poor air quality 
Smog
Traffic congestion
80% of the roads and
90 % of the junction
have almost reached
capacity limit in urban
Chinese cities with >1
million inhabitants
Road Safety
Road fatalities at
62,387 in 2011 - 28%
are motorcycle users
Pollution
According to the World
Bank, 16 of the world’s
20 cities with the worst
air quality are in China
Increasing private car ownership and ridershipNoise
Fast growing urban
population
Decline in walking
and bicycle using
Cities combining
with suburbs to
form region
Insufficient public
transportation linking
cities and suburbs
Increasing
disposable
income
Rapid industrial
development
Better payment
terms to boost
car purchase
Increasing usage of
motorcycles

3. 3
Impact Trend
Fast growing urban population
Increased private car ownership and ridership
Rapid industrial development
Pollution
China’s growing urban population is a concern as only 1% of China’s 560 urban cities
reach World Health Organisation’s safety norms for air quality
•Vehicle emissions contribute up to 60% of air pollution in
large cities
 60% of particulate from heavy diesel-powered trucks
 22% of particulate from passenger vehicles
•PM 2.5 reaches 4 times norm limits in major urban cities:
 In 2010, more than 7,770 premature deaths were
directly linked to PM 2.5 pollution in Beijing, Shanghai,
Guangzhou and Xi’an
 3 times as high as traffic casualties
Drivers
Beijing, January 2013, central district seen from above
in heavy smog
Source: Greenpeace and Beijing University, 2010Source: NASA
low high

4. 4
Traffic Congestion
The imbalance between rapid growing private car ownership and the slower pace of road
construction has caused severe traffic congestion in China’s urban cities
Private car ownership increased from 12 mn in 2003 to 93 mn in 2012
•Shanghai in the past decade:
 Growth in private car ownership = 364 %
 Increase in road capacity = 110%
•Guangzhou in the past 5 years:
 Growth in private car ownership = 100 %
 Increase in road capacity = 2 %
A 62-mile-long traffic jam on a highway
leading to Beijing on its ninth day, 2010
Impact Trend
Fast growing urban population
Increased private car ownership and ridership
Imbalance between the fast growing traffic and the
pace of road construction
Insufficient public transportation both inside cities
and linking cities and suburbs
Drivers
low high

5. 5
Road Safety
Combining insufficient traffic management with inexperienced drivers and lax driving
habits, China has become one of the biggest contributors to the world’s traffic fatalities
• With only 3% of the world’s vehicles, China accounts for 24% of
the world’s traffic fatalities
• Road fatalities at 62,387 in 2011 - 28% are motorcycle users
• In 2011, the mortality rate from traffic accidents was 8.7 per
100,000 people in urban areas
• Traffic accidents cost the Chinese economy $21 billion a year.
Impact Trend
Inefficient regulation/management on vehicles
and circulation: scooters, motorcycles and cars
Inexperienced drivers due to loose execution on
getting driving licenses
Lax driving habits
Inefficient public transportation
Poor road conditions
Drivers
Scooters & bicycles circulate between
passenger cars , going into different directions:
very likely to cause traffic jam and road accident
low high
Source: WTO
September 2012, Shanghai: north-south and
east-west traffic to each other and lack of traffic
police to ease. Source: Dong Fang Daily

6. 6
Parking
Private car ridership rise, along with the lack of regulations (on parking resources, prices,
proper development) and lack of management have led to a nation wide parking shortage
Impact Trend
Insufficient laws on forcing property owners to
provide adequate parking for cars, scooters,
bicycles and delivery vehicles
Insufficient management on parking lots
Increased private car ownership and ridership
Drivers
• Severe parking shortage in large urban cities:
 Beijing:2.7 mn parking spaces (including 780 k in residential
areas) vs. 5.3 mn motor vehicles in the city
Shanghai: 780 k parking slots vs. 2.6 mn vehicles
 Chongqing: short 190 k parking spaces and the deficit is
growing by 400 spaces / day
Xi’an: a deficit of 400 k parking spaces
• Parking fees likely account for more than 1/3 of the annual costs of
owning a car for owners who must pay for parking.
An open-air car park in Tianjin City
with 90 parking slots, 2010
Crowded road side parking with car parking
inside a playground, Taiyuan city, 2010
low high
Source: People’s Daily, Xinhua News

7. 7
Transport
Management
7 Major Initiatives have been Carried out by the Chinese Government
around 3 Pillars – Reduce Car Footprint Reduction, Transport Management,
Promote Green Transportation
Reduce Car
Footprint
Quota on new car plate
license
1
Restriction on
circulation
2
Improved public
transportation
4
Dedicated lanes for
bus & bikes
5
Government push for
car electrification
6
Small fuel-efficient
vehicles
7
Increased parking fees3
Promote
Green
Transportation

8. 8
1 – Quota on New Car Plate License
4 cities in China have now implemented quota on new car plate licensing, some through a
plate lottery, some through auctions even bidding  Resulted in the drop of car sales
2011 2012 20172013 2014 2015 2016
Initiatives
Results
Beijing
From 2011, new
registration limited at
240,000 per year
through license plate
lottery
Beijing
By the end of
2017, total motor
vehicle park at 6
mn (vs. 5.2 mn
end of 2012)
Guangzhou
From 2012, new registration
limited at 120,000 per year.
(50% license plate lottery
including 10% green vehicles
+ 50% plate auction)
Nationwide
8 new cities intent to
implement quota on
new registration in
2014
Pollution Congestion Road Safety Parking
Beijing
Car sales dropped
56% in 2012
Guangzhou
• Car sales dropped 30% in
2012
• 60% mobility using public
transportation in 2012
Nationwide
Car sales expected to
drop approximately
400,000, which
accounts for 2% of
national sales
Beijing
25% reduction of
total amount of
pollutants
emission from
motor vehicle
Transferability to European cities

9. 9
Wenzhou
Guangdong
Guangzhou
Harbin
Shenyang
Shenzhen
Zhuhai
Beijing
Tianjin
Shanghai
Dalian
Nanjing
Suzhou
Jiangsu
Hefei
Hangzhou
Urumqi
Hohhot
Fuzhou
Xiamen
Changchun
Jinan
QingdaoShijiazhuang
Zhengzhou
Taiyuan
Guiyang
Changsha
Nanchang
Wuhan
Haikou
Chengdu
Nanning
Chongqing
Yinchuan
Lanzhou
Xi’an
Kunming
Xining
Beijing
During restriction
period in 2009:
• Traffic volume
↓19.5%
• Average speed on
road network ↑15%
• PM10 emission ↓7%
2 - Restriction on Circulation
Most tier 1 & 2 cities limited motorcycle use due to safety & environmental concerns. Some
also limited car use  Reduced traffic and decreased pollution level for short-term.
Motorcycle authorized
Motorcycle limited (by time period, areas and license)
Motorcycle banned in central areas and/or stopped releasing license
Electric Scooters banned or limited
Car circulation limited
Pollution Congestion Road Safety Parking
Initiatives
Nationwide
Restriction of
motorcycle circulation in
most urban cities
Results
Foshan:
Weigh of motorcycle in
urban mobility dropped
from 38.6% to 19.7%
Guangzhou:
• ↓20% accidents related
to motorcycles,
• ↓8% related death
Kunming:
↓35% death related to
motorcycles
Beijing
Car Use Restriction
based on odd and
even-numbered
license plates (during
certain periods)
Transferability to European cities

10. 10
Beijing
Started in April 2011 charge higher parking
fees in non-residential areas from 7am-9pm:
 Parking fee paid per car / day raised to
100-150 yuan
3 – Increased Parking Fees
Beijing has tripled its parking price in 13 central districts through a policy carried out in April
2011  Reduced parking usage and traffic volume after first month of implementation.
Pollution Congestion Road Safety Parking
Initiatives Results
Beijing
1st month of implementation:
• Traffic volume ↓12% on average
• ↓25-35 minutes traffic jam in central areas
• Usage of car parking ↓23%
Roadside
Parking
Open-air
Ground
Parking
Underground
Parking
5
6
5
5
8
15 (from the 2nd hour)
Before
After
Before
After
Before
After
Parking price in central areas
(price/hr in yuan)
Transferability to European cities

11. 11
4 – Improved Public Transportation
The initiatives to improve public transportation not only include building new infrastructures
but also increasing convenience in links between different public transportation modes
City Suburbs
Travel distance
Intercity
•Bus
•Metro
•Tramway•Bicycle
•Bicycle
•Suburb buses
•Suburb trains
•Intercity Trains
•Intercity Buses
Initiatives Results
Beijing
•7 new subway lines between 2009-2012
•153 new bus lines between 2009-2012
• 16 subway lines in 2012 covering 397 km (+50%
compared to 2009)
• Metro + Bus accounts for 39.7% of mobility
methods in 2012, compared to 29.8% in 2005
Hangzhou
Bicycle stands next to subway entrances
& bus stops
 to ease commute between residence
and the closest public transportation
• Number of bicycle rent has doubled in 4 years
2009 (3.5 mn / year) vs. 2012 (7 mn / year)
• Bicycle rent helped reduce CO2 emission
370 k tonne saving from 2009-2012 if
compared with private car ride
Pollution Congestion Road Safety Parking
Transferability to European cities

12. 12
5 – Dedicated Lanes for Buses & Bikes
Traffic management has been improved by prioritising buses with dedicated lanes and by
separating motor vehicles from non-motor vehicles.
Initiatives Results
Transferability to
European cities
• Installed dedicated lane for buses to
 prioritise public transportation 
ease traffic management
• 14 urban cities in China now have
developed BRT systems
• 5 on the plan
Kunming (first Chinese city to install dedicated
bus lane, in 1999)
Public transit mode share increased from
6% (1999) to 24% (2010).
Average waiting time for bus ↓59%
The bus lane increased capacity from
2,000 passengers/h per direction to 7,500
Bus Lane
Bikes and
Scooters
BRT in Kunming City
Pollution Congestion Road Safety Parking
Transferability to European cities

13. 13
6 – Government Push for Car Electrification
Electric vehicles have been promoted by the government through subsidiaries & tax
reductions  However, it hasn’t been effective to push the individual purchase of EVs
Initiatives Results
Transferability to
European cities
Governmental objective in the
development of EVs
By 2015, sales target of 500,000
electric & hybrid vehicles
(5-year-plan 2011-2015)
• 80% of 27,800 new energy vehicles
(electric, hybrid, fuel cell & natural gas)
sold in 2012 were buses
• Sales of electric vehicles:
 17,642 in 2013 vs. 12,791 in 2012
(38% increase)
 less than 1% of total vehicle sales
Incentives and tax reductions
To promote EV sales
To ease R&D of EV industry and
industries supporting this matter (such
as battery suppliers)
Incentives on purchase of electric vehicle
implemented in urban cities (Shanghai,
Changchun, Shenzhen, Hefei, Hangzhou,
Guangzhou, etc)
Up to 60,000 yuan per vehicle for
100% electric passenger cars
Electric cars exempted from 10%
purchase tax up to end 2017
Pollution Congestion Road Safety Parking
Transferability to European cities

14. 14
7 – Small Fuel-Efficient Vehicles
Many automotive constructors see opportunities in small vehicles in China due to severe
pollution, congestion and parking shortage
Initiatives
Results
Pollution Congestion Road Safety Parking
Increased sales of 1.6L and below passenger
cars in 2009-2010:
In 2009, ↑71% sales volume, reaching 7.2
mn units
=70% of total passenger car sales, reaching
its highest market share in history
Governmental
3000 yuan state
subsidy to owners
of 1.6L and below
passenger cars that
consume 20% less
energy than the
current standard
Governmental
2-year-long tax
reduction program for
purchase of 1.6L and
below passenger cars
 Vehicle purchasing
tax at 5% (2009) and
7.5% (2010) instead of
10%
Industrial
• Vehicle constructors see rising opportunities in small
vehicles in China due to high level of pollution and
congestion, as well as increasing parking shortage
• Toyota, Dongfeng, Ford, Nissan, VW etc intend to
increase proportion of small vehicles in their product
portfolio in China to reduce emission and promote
energy saving
2009 2010 20152011 2012 2013 2014
Toyota China released in
2013 a small car strategy:
A New VIOS and Toyota
YARIS was released
GAC Toyota plans to
sell 500,000 units in
2015, of which 40%
are small & medium
cars
Transferability to European cities

15. 15
Most Efficient Solutions to Urban Mobility Challenges
Restriction on car circulation, improved public transportation, dedicated lane for bus & bikes
and small fuel-efficient vehicles
European CountriesSolutions from China
Already
in place
Good
idea?
TransferablePollution Congestion Safety Parking
Quota on new
vehicle purchase
1

Restriction on
circulation
2
Increased parking
fees
3

Improved public
transportation
4
Dedicated lane for
bus & bikes
5

Government push
for car electrification
6
Small fuel-efficient
vehicles
7





16. 16
Nicolas Meilhan
Principal Consultant
Energy & Transportation Practices
(+33) 1 42 81 23 24
nicolas .meilhan@frost.com