Wendy Zhang/ Shanghai Daily news

Citing energy-saving concerns, the city government is considering the lifting of restrictions on cars with small engine capacities while imposing limits on luxury sedans.
To date, 84 Chinese cities from 22 autonomous regions and provinces have issued policies to restrict compact cars.
However, there has been a large improvement in the engine capacity of compact cars, so it is unnecessary to continue restricting the use of such cars, said an industry analyst.
For energy-saving purposes, Shanghai will develop cars propelled by a combination of fuels, and they are expected to reach the market in time for the 2010 Expo.