Research On the Driving Factors of China’s New Energy Vehicle Market

School of Public Administration, Guangdong University of Finance and Economics, 510220, Guangzhou, China

^* Corresponding author: christopherwu@ldy.edu.rs

Abstract

Over the past decade, China has witnessed a rapid development of new energy vehicles (NEVs), with both an increase in the product price/performance ratio and the implementation of stimulating policies playing an important role in this growth. To examine the factors influencing the NEV market, this paper considers four endogenous factors, namely principal components, specific designs, materials cost, and market competition, which affect NEV sales. In addition, four exogenous factors, namely subsidy, fuel cost, traffic restriction, and infrastructure, are also considered in this analysis. Subsequently, a comprehensive examination of their impact on NEV sales and their trends in influence is presented chronologically. After that, the impact of these factors has been analyzed through three case studies about battery packs, subsidy reduction, and spatial distribution. The findings indicate that China’s NEV market has undergone a transition from a phase driven by external factors in the past to one driven by internal factors currently and will continue to outpace conventional fuel vehicles in terms of product competitiveness in the future, which may even contribute to global vehicle electrification.