Research On Market Competition Of New Energy Vehicles

With global warming,increasing air pollution and the challenges of energy structure,many countries in the world have developed new energy vehicle(NEV)as an important national policy.To promote the development of NEV industry,the governments have developed a variety of incentives.In China,for example,the incentives including the financial subsidies,tax relief,vigorously develop infrastructure construction,increasing R& D investment and other promotional measures and policies.At present,there are mainly two kinds of models of cars,such as NEV and Internal Combustion Engine Vehicle(ICEV)in the Chinese market.In this paper,the market competition of these two models is taken as a research background.By establishing a market competition model,finding various promotion measures and policies impact on the market demand for NEV.Firstly,this paper establishes the market competition model of the NEV and ICEV under the condition of complete rationality.Respectively discusses the relationship between the profitability of NEV manufacturers and tax relief,cash subsidies,the manufacturing costs of NEV.Secondly,under the condition of considering range anxiety and bonus of utility,we establish the market competition model.Respectively,in the case of maximizing the profits of NEV manufacturers and ICEV manufacturers to get the optimal price.And then,under this condition,discussing the market demand for NEV and ICEV,and the profits of the manufacturers.On this basis,putting forward some policy measures that can effectively promote the development of new energy automotive industry.When the NEV manufacturers and ICEV manufacturers have made the maximum profit at the same time,dicussing the NEV optimal price,market demand and manufacturer profits,to obtain the incentives in equilibrium conditions.And we discuss the relationship between range anxiety and government cash subsidy under the condition of equilibrium,and draw the conclusion that government subsidies can effectively reduce the range anxiety of consumers.This paper studies the promotion of NEV from the perspective of market competition,and application of Hotelling model in the field of NEV market competition innovatively.Through the solution and proof of the model,it is found that the market demand of NEV and the profits of NEV manufacturers are affected by financial subsidies,tax relief,range anxiety,utility bonus of NEV and ICEV.The government can make promotion measures and policies based on the impact of different parameters of NEV market demands and NEV manufacturers’ profits.