Local govts urged to ease car purchase curbs

China is calling on local authorities to relax restrictions on car purchases, which would help unleash the potential of the world's largest auto market, according to analysts.

Local governments that have placed curbs on vehicle sales should explore gradually relaxing or removing them if conditions permit, said the State Council, China's cabinet, in a statement on Tuesday.

It also asked them to offer support to new energy vehicle purchases and facilitate trade in used vehicles among different regions.