SHANGHAI will hold its first public auction of automobiles owned by government departments and enterprises on April 24.

On sale at the auction, to be held by Shanghai Auction Co Ltd, are expected to be a total of 35 automobiles. All the vehicles come from an unnamed State-owned group.

Previously, only staff of State-owned enterprises were allowed to attend auctions of automobiles from government or enterprises, the Shanghai Morning Post reported.

Governmental departments, institutions and State-owned enterprises historically have bought automobiles for leaders according to their positions. These vehicles have sometimes been used for private business. The rules governing the use of government-owned vehicles are being reformed to reduce the cost to the public. Public auction of redundant vehicles in government departments and State-owned enterprises will recoup some of the money spent on cars.

The value of the automobiles to be auctioned on April 24 is estimated at about 3 million yuan (US$363,000). Bidding will start at 30 per cent below the market price.

Sources with the auctioneer said makes of cars being auctioned include Santana, Audi, Buick, Opel, Dodge and Cherokee. The most expensive car is a Buick Regal bought in September 2003, which is valued at an estimated 200,000 yuan (US$24,200).

A used-car expert said, compared with ordinary second-hand cars, "second-hand business cars from government and enterprises" have auspicious licence numbers such as 8788, 5858, 4688 and 2828. People who buy these cars can still use the numbers. Secondly, such cars have been better maintained. Before the auction, all the cars will be repaired and cleaned.

Similar auctions have been held in Sichuan, Guangdong and Hunan provinces. Shanghai's first auction of State-owned cars was held at the beginning of 2002 and was open only to officials and drivers of State-owned enterprises. (Star News)