The Guiyang city municipal government said on Tuesday that it would limit the issuance of new car license plates to ease the city's traffic congestion, according to a report from Caixin online on Thursday.

From July 12 onwards, private car owners in Guiyang will have to apply for two kinds of car license plates. The first car plate allows cars to enter any road. The quota is 2,000 cars for every month, and car buyers will have to draw lots before obtaining a car license platesplate. The lottery day is on the 25th of every month.

The second car plate bans cars from the roads inside 1st Ring Road during the a period of time yet to be determined by the traffic bureau, an insider from the traffic police network of Guiyang told the Global Times. The number of issued plates is not limited, the report said.

However, the new regulation does not have a legal effect on the cars that have signed pre-sellingale contracts, have paid subscriptions or have filed for record at the office of public security traffic management on or before July 11, 2011.

The number of motor vehicles in Guiyang, the capital of Guizhou Province has reached 616,000, a figure 7.7 times that of 2000, representing at an average annual growth rate of 23 percent.

Guiyang has become the second city to limit the number of new car license plates after Beijing, which has practiced the policy since December. 24, 2010.