Since　1994,　to　overcome　adoption　barriers　and　promote　new　energy　vehicles　(NEVs),　eight　cities　and　one　province　in　China　have　implemented　a　license　plate　quota　policy　for　internal　combustion　engine　vehicles　(ICEVs).　We　use　a　city-level　dataset　of　NEV　sales　to　assess　the　impact　of　license　plate　quota　policy　for　ICEVs　on　the　adoption　of　NEVs,　by　using　both　the　synthetic　control　method　(SCM)　and　difference-in-differences　(DID)　method　for　the　first　time.　We　find　that　license　plate　quota　policy　can　significantly　increase　the　annual　sales　of　NEVs　in　Tianjin,　Hangzhou,　Shenzhen,　and　Haikou　by　approximately　73.4%,　87.5%,　87%,　and　65.5%　of　total　sales　of　NEVs,　which　is　equivalent　to　increasing　the　annual　sales　of　NEVs　by　15,557,　22,267,　37,455,　and　448　vehicles,　respectively.　Further,　our　findings　indicate　that　a　license　plate　quota　policy　for　ICEVs　promotes　the　adoption　of　NEVs　but　has　certain　limitations,　for　example,　license　plate　quota　policy　has　a　short-term　inhibitory　effect　on　the　regional　auto　industry.　Moreover,　due　to　the　restraint　on　consumers　from　purchasing　ICEVs,　consumers　have　certain　negative　sentiment　toward　the　policy　based　on　text　analysis.　Regions　where　license　plate　quota　policy　is　adopted　generally　required　well-developed　public　transportation　and　adequate　charging　infrastructures.　©　2020　Elsevier　Ltd