The Association of Eco Car Importers and the Association of Auto Trade and Car Business Owners held a press conference on November 19, 2024, to voice their opposition to new license plate restrictions in Ulaanbaatar. Under the policy introduced on November 8, the issuance of license plates for cars imported into Ulaanbaatar has been capped at 730,000 as part of efforts to address traffic congestion, air pollution, and traffic accidents.
This decision, however, has sparked intense debate. Critics argue that it limits the property rights of Mongolian citizens, prompting a group of citizens to appeal to the Constitutional Court. The controversy has become a flashpoint for discussions about traffic policy, economic fairness, and government accountability.
Business Leaders Push Back
Ts. Lkhagvajav, the head of the Association of Eco Car Importers, criticized the policy for targeting car importers and buyers, calling it discriminatory and poorly thought out. Lkhagvajav emphasized that traffic congestion in Ulaanbaatar is not the fault of car dealerships or importers but rather the result of decades of unplanned urban development and poor governance. He demanded that Mayor H. Nyambaatar apologize for what he described as offensive and discriminatory remarks made about car dealers during a recent City Council session.
“If the mayor does not take responsibility for his words and actions, we will escalate our complaints to the Prime Minister and pursue legal action for defamation of business reputation,” Lkhagvajav said.
Demands from the Industry
The press conference outlined three key demands:
- Amend License Plate Regulations
Policymakers must revise the current restrictions to minimize harm to car importers and businesses. The affected parties called for a more collaborative approach in drafting regulations. - Increase the Registration Cap
The cap of 730,000 vehicles was exceeded long before the new policy came into effect, with current numbers surpassing 800,000. The industry demands that an additional 37,000 registration numbers be issued to alleviate the backlog. - Remove Unreasonable Requirements
Current regulations require car owners to prove they have a parking space or garage to obtain a license plate, which critics argue violates constitutional property rights. Furthermore, they claim the policy favors only those who can afford high-end, eco-friendly cars costing 100-150 million MNT, effectively sidelining average citizens.
What’s Next?
The associations hinted at potential escalations if their demands are not met, including sit-ins and legal challenges. They stressed that they are not opposing measures to reduce traffic congestion but are advocating for fairer and more inclusive policies that balance environmental goals with economic realities.
This debate underscores the broader challenges faced by Ulaanbaatar as it grapples with rapid urbanization, environmental concerns, and socioeconomic inequality. For now, all eyes are on city officials to see how they respond to the growing discontent.
