Status and Market Evaluation for New Energy and Conventional Vehicles of China

Abstract

Contemporarily, China’s automobile market has expanded rapidly and become one of the world’s largest automobile producers and consumers. However, facing the environmental pressure and the demand of energy structure transformation, the automobile industry is experiencing a profound change from traditional fuel vehicles to new energy vehicles. This study analyzes the development status and market assessment of traditional fuel vehicles and new energy vehicles in China, and explores the changes and differences between the two. The sales of new energy vehicles show significant growth, and the market share is also rising year by year, while the sales of fuel vehicles show a downward trend. Despite the rapid expansion of the new energy vehicle market, it is still facing problems such as profitability issues, uneven investment in R&D, regulatory mechanisms to be improved and lagging infrastructure construction. In contrast, the fuel vehicle industry is gradually contracting amidst policy restrictions and changes in market demand, and companies need to accelerate their transformation and upgrading, and improve their research capabilities. China’s automobile industry is in a key stage of transformation and upgrading. The traditional fuel vehicle industry needs to shift towards new energy, strengthen collaborative innovation, optimize industrial structure, and focus on the expansion of after-market services. Overall, China is expected to lead the global automotive industry in the direction of green, intelligent and low-carbon development, and realize the historic leap from a large automotive country to a strong automotive country.