Accompanied by the rapid progress of global industrialization, resource waste and environmental pollution and other issues continue to emerge, the negative impacts caused by climate change has become the core constraints on global sustainable development, and vigorously promote the green development model with green, low-carbon and recycling as the main principle of the imminent need to promote the green development model. In order to accelerate the transformation of the energy structure, major economies around the world have launched a series of support policies for the new energy vehicle industry in recent years. According to CleanTechnica, the compound growth rate of global new energy vehicle sales from 2012 to 2022 is as high as 55.1%, and the global sales of new energy passenger vehicles in 2022 will increase by 56.4% year-on-year to 1,091,000, with the penetration rate rising by 5 percentage points year-on-year to 14%, which is an all-time high in terms of both sales and penetration rate.

In the context of China's adherence to the green, low-carbon and sustainable development path, vigorously developing new energy vehicles has become an important strategic choice for the high-quality development of China's automotive industry. According to the data of China Association of Automobile Manufacturers (CAAM), in 2022, China's new energy vehicle production and sales increased by 96.9% and 93.4% year-on-year to 7,058,000 and 6,887,000 respectively, and production and sales ranked the first place in the world for 8 consecutive years, and the compound growth rate of China's new energy vehicle sales from 2012 to 2022 was 87.6%, which showed a high-speed development trend. 2023, from January to October, China's new energy vehicle production and sales increased by 33.9% and 37.3% respectively. -October, China's new energy vehicle production and sales increased by 33.9% and 37.8% year-on-year to 7,352,000 and 7,280,000 respectively, and the penetration rate increased by 6.4 percentage points year-on-year to 30.4%. Despite the impact of high base figure and intensified market competition, the year-on-year growth rate of China's new energy vehicle production and sales has slowed down since 2023, but driven by multiple factors, China's new energy automobile industry has a strong potential for future development.

First, green development, new energy vehicles to replace fuel vehicles is the general trend. China is in the late stage of industrialization to post-industrialization transition stage, according to the development law of developed countries, when the tertiary industry, mainly service industry, becomes the main driving force of economic development, the carbon emission intensity of the whole society began to tend to decline. At the current stage, China's economic growth model has begun to switch from relying on the crude investment-driven model to high-quality development, and the development of green economy is the inevitable requirement of the new development stage. At present, the world's major countries have long since formed a consensus on green and low-carbon development, and since the late 1980s have begun to respond to global climate change in an international collaborative manner, reaching a series of agreements and international conventions. Among them, the Paris Agreement reached at the United Nations Paris Climate Conference held in December 2015 is of significant milestone significance, proposing to limit the increase in global average temperature to less than 2 degrees Celsius compared with the pre-industrial level by the end of this century, and working to limit the warming to less than 1.5 degrees Celsius. At present, major economies around the world have formulated corresponding strategies around the above goals, and many countries or regions have already put forward the goal of carbon neutrality. As a developing country, China has shown its commitment as a big country by putting forward the goal of "dual-carbon" during the critical period of economic structural adjustment, and the promised time from carbon peak to carbon neutrality is relatively short compared with that of developed countries, so how to cope with the dual challenges of economic and social modernization and energy conservation and emission reduction can be said to be a long way to go. According to the International Energy Agency (IEA) data, the transportation industry will account for 26% of global carbon emissions in 2020, and the substitution of new energy vehicles for traditional fuel vehicles is a key link in China's energy structure adjustment and promotion of green transformation.

Second, the policy support, promote new energy vehicle penetration rate to further enhance. New energy vehicles in the initial stage of development generally have insufficient range, supporting charging facilities are incomplete and other issues, countries more in the form of financial subsidies to support the industry. As the new energy vehicle industry gradually enters a mature stage of development, economies around the world have introduced a series of successive policies to drive the further development of the industry. China began to implement the new energy vehicle purchase subsidy policy in 2010, during which it underwent many dynamic adjustments, and the financial subsidy policy has played a crucial role in the construction of branding, marketing, industrial chain and value chain of China's new energy automobile industry.On September 27, 2017, the Ministry of Industry and Information Technology (MIIT), the Ministry of Finance (MOF), the Ministry of Commerce (MOFCOM), the General Administration of Customs (GAC), and the General Administration of Quality Supervision, Inspection and Quarantine (G AQSIQ) jointly released the Passenger Vehicle Measures for Parallel Management of Average Fuel Consumption and New Energy Vehicle Points of Enterprises", which has been formally implemented since April 1, 2018. During the implementation of the double points policy, issues such as the urgent need to update technical standards and the imbalance between supply and demand in the points trading market have gradually emerged. In order to meet the new needs of the market, the Ministry of Industry and Information Technology, the Ministry of Finance and other departments have revised the dual-integral management measures twice in 2020 and 2023, and the latest version came into effect on August 1, 2023. new energy vehicle points are related to mileage, energy density, and power consumption, and the continuous optimization of the corresponding standards is conducive to forcing the enterprises to accelerate product innovation and technological upgrading. in July 2023, the The National Development and Reform Commission and other departments issued the "Several Measures on Promoting Automobile Consumption", in order to promote the development of the new energy automobile industry, proposed to strengthen the construction of supporting facilities for new energy automobiles, strive to improve the carrying capacity of rural power grids, reduce the cost of purchasing and using new energy automobiles, and promote the increase of new energy automobile purchases in the public sector, a series of supportive policies continue to be implemented in order to drive the rapid development of the new energy automobile industry. A series of supportive policies will help drive the rapid development of the new energy vehicle industry.

Third, the cost of new energy vehicles has been gradually revealed as the cost-effectiveness. China's new energy automobile industry development has been gradually transitioned to the market demand traction stage, new energy vehicles cost-effective, user experience, related facilities are perfect and other factors will be the key to determine whether the new energy automobile industry can be benign development in the medium and long term. Previously, due to the new energy vehicle production technology and manufacturing process compared to traditional fuel vehicles have not yet matured, the scale effect has not yet appeared and power battery production costs are higher factors, the same configuration of new energy vehicles are often much higher than the price of traditional fuel vehicles. Power battery accounts for 40% of the cost of pure electric vehicles, which is mainly composed of positive electrode, negative electrode, diaphragm and electrolyte, of which the cost of positive electrode materials accounts for about 45%. Lithium carbonate is an important cathode material for lithium-ion batteries, in recent years, with the rapid development of new energy vehicles and energy storage industry, the price of lithium carbonate in 2022 once climbed to 600,000 yuan / ton or so, in this context enterprises have to expand production capacity, at the same time attracted a lot of giants across the border to cut into the field of lithium, the industry's production capacity has expanded dramatically. 2023 since, lithium carbonate prices have been significantly shocked down, according to the data of Antaike On November 13, the average price of domestic lithium carbonate (battery pole, 99.5%) was 166,000 yuan / ton, a significant drop of 67.45% compared with the average price of January 3, the raw material price pivot downward shift is conducive to the decline in the cost of power battery. In addition, with the scale effect of power battery enterprises to further show, superimposed on the technology iteration and upgrade, power battery prices are also inevitable trend, conducive to new energy vehicles acquisition cost downward. New energy vehicles in the maintenance costs, energy costs and traditional fuel vehicles compared to the advantages of more obvious, in the second-hand new energy vehicle assessment system gradually improved, the value of the rate of improvement is conducive to promote new energy vehicles to further reduce the cost of the whole life cycle, and thus accelerate the process of replacing fuel vehicles. To summarize, under the inherent requirements of green development, the continuous support of supportive policies, and the downward shift of the whole life cycle cost and other factors, China's new energy automobile industry is expected to maintain a steady growth trend in the future.