The first group of premium government automobiles to be auctioned off amid the ongoing frugality campaign have gone under the hammer in Beijing.

According to Zonto Auction, the 106 vehicles it sold on Sunday were from six central government departments including the China Insurance Regulatory Commission, China Securities Regulatory Commission and State Bureau for Letters and Calls.

The cars were without plates, which would have to be supplied by the purchasers.

A total of 505 bidders from around the country joined the auction, which brought in proceeds of 6.6 million yuan ($980,000).

The highest bid went to a Toyota cross country vehicle for 200,000 yuan.

Li Guanwen, 40, of Hebei province, bought a Skoda bus for 160,000 yuan.

"The market value of this bus is around 500,000 yuan," said Li.

"I think the reform of official vehicles is a very good thing and is a very good approach to remind civil servants to cut costs and to serve the public well."

In November 2013, public agencies were told to cut their vehicle fleets, as well as reduce receptions and overseas trips. The use of all vehicles, except those required for law enforcement, emergency duties and essential public services, were scrapped or severely reduced.