Exploring the Factors That Promote Sustainable Growth in Regional Sales of New Energy Vehicles: An Empirical Study of China

Abstract

In recent years, China has been at the forefront of the world in the development of new energy vehicles (NEVs). However, national financial subsidies for NEVs will be withdrawn at an accelerated pace with the marketization process. Regional policies have become key to compensating for this withdrawal; these policies can renew the development of NEVs. Therefore, this paper explores the endogenous power of NEVs in blooming from the urban level in China. We used the multiple linear regression method to examine the influence of market and policy and found that the most effective way to promote sales growth of NEVs is to combine both factors. In terms of the market, higher diversity and coverage will make regional competition fair and reasonable. In terms of policy, road priority policy is the main factor to promote sales growth, especially in the cities with license restrictions. Although the regional financial subsidy has declined, its role in increasing sales still exists. Fee relief has the weakest impact on sales and there is still much room for improvement. The findings of this paper provide a foundation for regional governments to develop better decision making strategies for promoting NEVs.