The capital's restriction of car purchases has been a controversial subject since it was introduced in January. Now, concern about the impact of the policy on the auto industry has prompted the National Development and Reform Commission (NDRC) to send a report to the State Council, asking for the end of car purchase limits in Beijing, the National Business Daily reported on Friday.

However, Beijing News subsequently reported that the authorities have denied such a plea was ever made.

Both the NDRC and the Beijing traffic authority have refused to respond.

As part of its bid to tackle increasing traffic congestion, Beijing will only allow 240,000 license plates to be registered this year, a sharp decrease from the total sales of last year.

Potential car buyers must now take part in a monthly lottery and hope to be selected before they can get a license plate and subsequently buy a car.

According to Chi Yifeng, general manager of Yayuncun Automobile Trade Market, a total of 122,800 cars were sold during the first five months of this year in the city, a fall of 61 percent year-on-year.

But Chi, who is also vice-chairman of the China Automobile Dealers Association, said he believes there is little chance that the car purchase restrictions in Beijing will be scrapped.

"I know that some organizations in the car industry are lobbying the authorities to adjust the polices," he said. "I think, if changes are made, they will be superficial, it is impossible to adjust it substantially."

Chi said Beijing residents collectively own too many vehicles and he envisions that, in future, new rules may only allow half of the licensed cars in the capital to be driven within its Fourth Ring Road on any given day.

"The city's goal of limiting vehicles will not be changed, at least not in the next three to five years, because, compared with car sales volume, easing traffic congestion is more important to Beijing," he said.

Beijing's population has already officially reached 19.6 million, surpassing the target population of 18 million for the year 2020. As of June 19, there were nearly 4.92 million registered vehicles in the city.