China controls the number of new licence plates that are issued each year in seven large cities, including Beijing and Shanghai, to control pollution and congestion. Licence plates are issued through a lottery system. CAAM general secretary Dong Yang said that relaxing the limits could boost overall sales by as much as 2% a year, the Financial Times said.
Car sales in China have been flat for the past eight months and may contract for the full year, CAAM said, China Daily reported.
Vehicle sales from January to August totalled 15.02 million units, with 136 fewer vehicles sold than in the same period last year, CAAM said, according to China Daily.
At CAAM's monthly briefing, deputy secretary-general Shi Jianhua also told reporters that plate limits should be reconsidered, the Financial Times said.
The Chinese government issued a draft environmental law in June, imposing levies on air, water, noise and waste polluters. The draft law was drawn up by the Chinese finance ministry, state administration of taxation, and ministry of environmental protection in a bid to promote an "energy saving, and environmentally friendly" industrial system, state-owned news agency Xinhua said.