The Transport Department on Wednesday said the exemption period could last up to a decade for owners of vehicles that have not been licensed for at least two years under new rules aimed at stopping drivers abandoning unwanted cars.

Officials earlier announced that starting December 22, owners will be issued a notice that requires them to either renew their licence, or cancel the registration after scrapping the vehicle or shipping it out of Hong Kong.

This means that the registration for vehicles that have not been licensed for two years will no longer be cancelled automatically.

Those failing to take action within three months upon receiving the notice can be fined up to HK$10,000 and receive a maximum jail term of three months, plus stiffer penalties for repeated offences.

According to the department, drivers may apply for an exemption if they have a genuine difficulty in taking the required actions within the notice period or have reasonable grounds for not licensing their vehicles.

Assistant Commissioner of Administration and Licensing, Amy Lee, told an RTHK radio show that a one-year exemption will be granted to owners with vehicles awaiting spare parts for maintenance.

She said the period could be extended if the spare parts are yet to be delivered before the exemption ends.

Lee went on to say the time span will be longer for cars older than 30 years that are kept as private collections and not used on the roads.

"If the owner states that he or she owns some private land or a parking space to store the car, our preliminary plan is the exemption can last for up to 10 years," she said.

"If owners say the spot is rented, or they rented a warehouse to keep the car, let's say the rental period is three years, then the exemption period will be aligned with the rental."

Other grounds for exemption includes vehicles for sale that are held by a dealer.

Lee added the department will step up promotion to remind owners to handle their unlicensed vehicles in time.