The groundwork for a new and potentially lucrative business—buying and selling car license plates—is already well underway in Ulaanbaatar CIty. This business gained momentum when the Ulaanbaatar City Council secretly passed a resolution last February, limiting the issuance of vehicle registration plates to 730,000. The term “secretly” is used because the decision was made during the eve of Tsagaan Sar, a time when the public’s attention was entirely focused on the national holiday. Taking advantage of this, the members of the Ulaanbaatar City Council, dominated by the Mongolian People’s Party, swiftly approved the resolution without public notice or debate.
The primary rationale behind limiting the number of license plates was to reduce traffic congestion in Ulaanbaatar. In other words, this regulation was part of a series of measures aimed at mitigating traffic jams, as well as supporting the transition of ger districts into apartment housing—an initiative that included several other laws and regulations passed alongside it. Since the authorities failed to effectively address traffic congestion in the capital city, they opted for a rather simplistic solution: to automatically curb the number of vehicles by limiting their registration plates. However, residents of the capital city have already come to realize this so-called “brilliant” idea of the officials which has had no significant impact on reducing traffic, despite the grand promises.
Mayor’s ‘Business’ Initiative
The mastermind behind this resolution was none other than the Governor of the Capital City and the Mayor of Ulaanbaatar, Kh.Nyambaatar. He explained, “In 2013, Ulaanbaatar had 325,000 registered vehicles. Today, that number has surged to 700,000. The uncontrolled import of cars is the main cause of our traffic jams. Ulaanbaatar residents spend an entire month of their lives stuck in traffic each year. We are importing over 50,000 cars annually. At this rate, by 2025, Ulaanbaatar will be in complete gridlock, with traffic at a total standstill throughout the day. We must identify and resolve the root cause of this problem.”
However, in reality, the root of Ulaanbaatar’s traffic issues lies not with the vehicles themselves but with the leaders or the officials who have failed to find effective solutions. Over the years, it has become evident that it is the responsibility of the city officials to create an environment where traffic flows smoothly, regardless of the number of cars on the road. This requires well-thought-out, science-based, and citizen-friendly decisions and solutions. Unfortunately, Mayor Kh.Nyambaatar seems determined to take the easy route, even if it means burdening the citizens with harmful policies. What is most concerning is that his decisions have consistently failed to yield positive outcomes, instead generating a series of negative consequences, one after another.
This license plate cap is just another example of misguided governance in Ulaanbaatar, where short-term fixes are prioritized over long-term, sustainable solutions. The looming reality is that such policies will not ease traffic congestion; they will only fuel new forms of profiteering, such as the trading of registration plates at inflated prices, creating yet another layer of economic inequality and frustration among residents.
Post-Election Chaos
According to the resolution passed by the Ulaanbaatar City Council, the issuance of vehicle registration plates in the capital was capped at a maximum of 730,000. Earlier this month, the number of registered vehicles reached this upper limit, and as a result, no new registration plates could be issued in Ulaanbaatar. This led to the sudden disappearance of Ulaanbaatar’s available license plates from the online system of the National Road Transport Center. People who had queued up at the center to obtain plates were left bewildered. The situation sparked widespread confusion and criticism, with many pointing fingers at the city’s leadership.
After two to three days of public outcry and chaos, the issuance of license plates in the capital resumed. Plates for Ulaanbaatar reappeared in the online system of the National Road Transport Center, signaling the political maneuvers that come with election season. It became apparent that these plates were reintroduced to calm public frustration and quell the mounting criticism ahead of the upcoming local elections. This move led to suspicions that after the election, the authorities would fully enforce the cap, leaving citizens trapped by the strict regulations.
Car dealers echoed these concerns. One remarked, “They paused the issuance of license plates and then restarted it. Everything seems normal now, but with the elections approaching, it’s clear they’re trying to temporarily ease public frustration. After the elections, they’ll likely stop issuing plates again. At that point, license plates will become scarce and expensive, and the sale of cars will slow down significantly. This won’t just harm us; people trying to buy cars will be forced to purchase license plates at inflated prices from third parties.”
Warnings Ignored
“This cap on license plates will create artificial demand, and with that, a network of corruption will flourish, as those in power find ways to profit. It’s going to be like selling phone numbers; the burden will fall on the citizens. What was the purpose and motivation behind forcing such a project through? Instead of imposing such regulations, why not make well-researched, data-driven decisions?” warned Ulaanbaatar City Council member P.Ganzorig during the discussion of the resolution.
Council member P.Naranbayar also voiced his concerns, saying, “This decision offers no tangible benefits to society. In fact, it will negatively impact those engaged in car sales and related services. Moreover, it will create additional hardships for first-time car buyers and low-income citizens. The process of purchasing a vehicle will become unnecessarily complicated. I see this as Kh.Nyambaatar pushing a communist-style project. This is yet another example of the mayor ignoring the voices of the citizens affected by these decisions.”
In addition, the council member, M.Tulgat of the Democratic Party (DP) opposed the resolution, noting that it was being passed right before Tsagaan Sar, a time when public attention was diverted. At that time, DP and the HUN parties demanded the resolution be withdrawn, and even staged a walkout in protest. Citizens also organized demonstrations to express their dissatisfaction. Unfortunately, none of these efforts succeeded.
Interconnected Decisions
We are already beginning to feel the effects of the Ulaanbaatar City Council’s resolution to cap the number of license plates. Previously, Mongolia imported around 80,000 vehicles annually, but this year, we have already reached that number in just the first half of the year. Another indicator is the sharp increase in the number of license plates issued. On average, 50,000 vehicle registration plates were distributed each year, but in the first eight months of this year alone, that number surged to 89,000. These figures clearly demonstrate the artificial demand created by the cap.
Furthermore, there has been a noticeable rise in the number of people seeking to exchange their provincial license plates for Ulaanbaatar ones. Branches of the National Road Transport Center have been overwhelmed by individuals seeking this service. This surge in demand is another consequence of a “brilliant” initiative spearheaded by Kh.Nyambaatar. In particular, Kh.Nyambaatar proposed, and the city council approved, a regulation requiring drivers of provincially registered vehicles to pay 5,000 MNT per day to drive in Ulaanbaatar. This resolution was also passed during the eve of Tsagaan Sar and has been in effect since the first of this month, further driving up demand for Ulaanbaatar license plates.
The mayor’s uncaring policies seem to reinforce one another, laying a solid foundation for the emergence of a new business centered around the trading of vehicle registration plates. Each decision feeds into the next, entrenching this burgeoning market and complicating the lives of ordinary citizens.
Human Rights Left Behind
The communist-style initiative spearheaded by Kh.Nyambaatar not only fosters a booming market for vehicle license plates but also blatantly infringes upon citizens’ rights. When asked, “What will be done now that the number of license plates has reached its upper limit in the capital?” officials responded with a feeble explanation: “The number of registration plates has surpassed the cap of 730,000. We are considering excluding the registration of buses, trailers, locomotives, motorcycles, tankers, and other types of mechanisms from the quota.” Despite this explanation, it is clear that the number of plates will soon once again hit its upper limit.
The Eco-Friendly Vehicle Importers and Consumers Protection Association had warned from the outset that limiting vehicle imports and being stingy with the issuance of license plates is not a viable solution. Ts.Lkhagvajav, the head of the association, emphasized that this decision severely violates human rights. “Imposing limits on the issuance of vehicle registration plates violates the fundamental principles enshrined in the Constitution and infringes upon the Mongolian people’s right to property. The Constitution guarantees every citizen the right to acquire, own, and inherit both movable and immovable property,” Ts.Lkhagvajav explained.
He added, “This decision is not merely about issuing license plates; it constitutes a serious violation of human rights. Citizens must recognize this. Our association is the only professional organization that consistently operates in this sector. Yet, the government never once consulted industry experts before making this decision. Had they sought professional input, they would have found more appropriate, less restrictive solutions. Instead, they directly encroached upon citizens’ rights.” “While this decision might not yet have a significant impact on you or me, we must acknowledge that the people of Mongolia’s rights are being gradually eroded. If the city’s administration can infringe upon our right to own property today, it is only a matter of time before they restrict another right tomorrow. This is what we are trying to warn the public about,” Ts.Lkhagvajav stated.
Government Monetizing License Plates
Previously, citizens could order their vehicle registration plates for free through the online system of the National Road Transport Center. For instance, it used to cost only 50,000 MNT to print the plates after placing the order online. Now, however, a 100,000 MNT charge is automatically generated when one attempts to order plates through the online system. In other words, the government has begun selling license plates itself.
Moreover, the process of transferring the authority to issue plates from the National Road Transport Center, which operates under the Ministry of Road and Transport Development, to the relevant agencies in Ulaanbaatar is currently underway. This has led to suspicions that the mayor of Ulaanbaatar is trying to centralize this “business” under his control. In the near future, acquiring a vehicle registration plate could very well depend on appeasing a city official or resorting to bribery—this is merely a matter of time.
