The Nauru Government says too many vehicles are being imported into the country.
Nauru Photo: AFP
The Transport Minister Martin Hunt has told parliament that this is causing road congestion and wasting land.
He said the island, with a population of about 11,000 and few roads, has more than 5,000 registered vehicles, and many unregistered.
Mr Hunt said the surplus of vehicles, including motorcycles, will also cause environmental damage.
New bus schedules are being worked on to encourage people to use public transport.
The Director for the Environment, Bryan Star, said a major issue is when poor quality vehicles, which break down more quickly, are brought in and end up being trashed and then stock piled on the land and contaminating the water supply.
There are laws that prohibit the importation of vehicles that are older than 12 years.
Mr Star said good car management and maintenance is the secret to minimise the premature scrapping of cars.