The Impact of Fiscal Subsidies on China’s New Energy Vehicle Market: A Supply-Demand Perspective

DOI

10.2991/978-2-38476-509-6_93How to use a DOI?

Keywords

New Energy Vehicle subsidies; Supply-Demand Analysis; Market Transition; Technological Innovation; Industrial Policy

Abstract

This study examines the impact of fiscal subsidy policies on China’s new energy vehicle market from both supply and demand perspectives. Among them, it examines how fiscal subsidies affect producer costs and consumers’ purchasing habits. At the same time, through public relations economics, it also analyzes the impact of subsidies on correcting positive market externalities and promoting industrial development. Based on the content and results of this research, three main impacts on the new energy vehicle market were analyzed: increasing industrial production through supply chain development and large-scale manufacturing, promoting consumer demand through price reduction and incidental benefits, and promoting technological innovation through performance-linked incentives. Meanwhile, the changes in product strategies, industrial transformation and competitive landscapes triggered by subsidies have all indirectly affected the traditional fuel vehicle market. The study also examined the market’s response to the gradual phasing out of subsidies, highlighting the opportunities and challenges that need attention. This study analyzes the impact of subsidies on long-term dependence and correcting positive and negative externalities from two different perspectives. This research finding provides meaningful strategic references for decision-makers in China’s automotive market.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Zixuan Fang
PY  - 2025
DA  - 2025/12/15
TI  - The Impact of Fiscal Subsidies on China’s New Energy Vehicle Market: A Supply-Demand Perspective
BT  - Proceedings of the 2025 International Conference on Mental Growth and Human Resilience (MGHR 2025)
PB  - Atlantis Press
SP  - 838
EP  - 846
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-509-6_93
DO  - 10.2991/978-2-38476-509-6_93
ID  - Fang2025
ER  -