Linking short- and long-term impacts of the government, consumers, and manufacturers on NEV sales and market share in China

Abstract

The accelerated expansion of the market for new energy vehicles (NEVs) is encountering obstacles. We aim to provide empirical evidence for optimizing policies and promoting the sustainable development of NEVs. Using monthly sales and market share data of NEVs in China from 2015 to 2023, this study employs vector autoregression and vector error correction models to assess the long-term and short-term effects of factors associated with government, consumers, and manufacturers on NEV adoption. The results indicate that governments and manufacturers play a key role in NEV promotion compared with consumers While manufacturer advertising temporarily boosts NEV presence, long-term market share gains hinge on their R&D. Delayed effects from consumer satisfaction highlight the need for manufacturer responsiveness. Post-subsidy, the government focus should pivot from consumer to manufacturer support. These findings have the potential to enhance our understanding of NEV development from the perspective of stakeholders and to offer valuable insights for the future development of NEVs.