Research On The Electric Vehicle Subsidy Policy Based On The Life Cycle Cost

In the context of climate warming and energy crisis, the advantages of electric vehicles to reduce emissions, improve energy efficiency, reduce oil dependence, and promote the sustainable development of the automotive industry have attracted the world’s governments to support the development of new energy vehicles. In China, the national and local governments give a lot of subsidies and supporting policies to actively promote the electric vehicles. However, the electric vehicle market is still lack of competitiveness. Consumers are still in a wait-and-see attitude. It is necessary to uncover if the current subsidies can meet the consumer’s utility.This thesis from the perspective of consumers to decomposes the life cycle cost into the tangible and intangible cost. Using empirical analysis method and collecting the vehicle datas of three types of cars. Then establishe the net present value model of life cycle cost and the subsidy analysis model to analyze the life cycle cost and the subsidy of the cars.The results of the study show that, the intangible cost of pure electric vehicle will increase the life cycle cost by an average of RMB fifty-eight thousand and has little impact on the cost of plug- in hybrid vehicles. So the life cycle cost is significantly affected by the mileage of pure electric vehicle and the cost of unconvenient to charge. The cost of carbon tax is less.In Shanghai and Beijing where license fee is higher than other cities, people buy pure electric vehicles under current subsidy policies have economic advantages. However, the market did not show a sales inflection point. It needs to get rid of consumers’ awareness of pure electric car use costs, battery performance and battery life anxiety through propaganda. And continuous to improve the vehicle performance and the battery technology and complete the charging facilities.Without considering the factors of limiting purchase policise, plug- in hybrid car need to be subsidized by RMB 12.09 thousands. P ure electric vehicles which mileage is between 80 km and 150 km need to be subsidized by about RMB 126.78 thousands to RMB 132.98 thousands. Mileage between 150 km and 250 km need to be subsidized by about RMB 150.40 thousands to RMB 157.19 thousands.Therefore, in 2016 the national and local government subsidies for plug- in hybrid vehicles need to be reduced. In the cities which have licensing policies it is even no longer needed to be subsidized. If the plug- in hybrid vehicles sustained to be subsidied, it may affect the development and promotion of pure electric vehicles. For the promotion of pure electric vehicles, the government and enterprises need to consider the characteristics of the cities to continue implement different subsidy policies. The government and enterprises need to consider the issues like short battery life, charging pile cover is not comprehensive, long charging time and other key issues to carry out effective measures to promote it.