Beijing's auto sales crash

"Commuters like me, who live in suburban areas, have to buy a car. Or we at least need to drive to a nearby metro station. If housing prices were not so high, I could have bought a place near my office," she said.

Although there are many issues the new regulations fail to address, one point seems certain - 2011 will be a tough year for car dealers.

Zhong noted that Beijing already has China's largest auto market, regarded by manufacturers as a gold mine.

"The licensing restrictions blew up the gold mine, and manufacturers are now more worried that other cities will follow Beijing in enacting similar policies," he said.

Wang Yang, a salesperson at the Beijing Qingyang FAW (First Automobile Works)-Volkswagen 4S shop in Fengtai District, told the Global Times that in just under two weeks before new rules came out, his deal-ership sold as many cars as it normally does in a month.

However, the numbers took a major hit over the weekend, and sales aren't expected to rise anytime soon.

"Our customers decreased by 80 percent compared with usual times," Wang said. "Let's say a salesperson sold 20 cars per month in the past. Now, he will sell just 10 cars in the same period of time."

He added that the store is now working hard on countermeasures for next year's downturn.

"Next year's sales in Beijing will be much less than what we achieved this year. After-sale service will be our key focus to win over and maintain our clients," Yang Guang, a PR officer with Guangqi Honda Automobile Co Ltd, told the Global Times.

Yang said the new rules could alleviate the increase of cars by inhibiting consumption, but the government has a lot of work to do to improve the city's public transportation and upgrade its infrastructure.

Du Fangci, assistant general secretary of the China Association of Automobile Manufacturers, told the Global Times that restrictions on car purchases will definitely make manufacturers reduce their productions, and the country's auto industry will be hurt if more cities follow in Beijing's steps.

"Low- and medium-end cars will bear the brunt of the impact as consumers find it harder to get a plate for a car," Du said.

He warned that the new rules may also hinder the technological development of the country's auto industry if producers turn to rural markets, where low-end cars are the main focus.

Zhu Shanshan and Song Shengxia contributed to this story