An Investigative Study on the Development Strategies for Electric

Vehicle Enterprises

SATYA SHAH, LINGHAN ZHANG

Engineering Operations Management

Royal Holloway University of London

UNITED KINGDOM

Abstract: - With the continuous development of science and technology, cars have become an indispensable

means of transportation for human beings in daily travel. More and more cars appear in our life. In recent years,

as consumer awareness of energy conservation and environmental protection has increased, global demand for

sustainable development has increased, and many new energy vehicles. Because the non-renewable resources

such as oil and natural gas needed by traditional fuel cars are consumed faster and faster, the exhaust emissions

of traditional cars are polluting the environment increases, so new energy vehicles are the future development

trend of the automobile industry. With the international context of the rapid development of new energy trams,

the sales volume of electric vehicles in China's automobile market is not good. Through data analysis and industry

research, the key factors and reasons affecting the development of electric vehicles are found, make certain

suggestions to Chinese new energy electric vehicle companies, in order to change the current situation of low

sales of new energy vehicles, the report objectively and truly analyses the future planning of the development of

Chinese electric vehicle enterprises and the change of the development trend, as well as the moderate fine-tuning

of the sales pricing.

Key-Words: - Electric Vehicles (EVs), Strategic Development, Transportation, Green Energy, Automotive

Received: August 16, 2023. Revised: February 17, 2024. Accepted: March 4, 2024. Published: May 8, 2024.

1 Introduction

With the development of economic globalization,

residents' demand for cars is increasing year by year,

and they have higher requirements for quality of life.

More and more cars are produced, sold, and used [1].

While providing people with convenient and efficient

services, the exhaust emissions of fuel cars and the

consumption of non-renewable resources and fuels

bring a lot of trouble and harm to human life.

Automobile exhaust contains hundreds of different

compounds. The main pollutants emitted by

automobiles are carbon monoxide (CO),

hydrocarbons (HC), nitrogen oxides (NOx), carbon

dioxide (CO2), and particulate matter (PM).

Automobile pollution has become a global public

hazard, and its contribution to the increase of

greenhouse gas concentration cannot be ignored [2].

The internal combustion engine of a car is a small

chemical plant, consuming a lot of oil resources. The

combustion of gasoline generates a driving force, but

also produces a lot of complex chemical reactions,

emitting many greenhouse gases, aggravating the

greenhouse effect, bringing great challenges to the

ecological balance, but also to the optimization and

improvement of the global environment has caused

huge pressure [3].

In the 1960 s, the oil crisis makes people pay

attention to pure electric cars again this time it

actually entered the industrialization stage of the

continent, in the middle of the oil crisis has

frequently, this period became the human cannot

ignore a problem, people have realized this problem,

and began to reflect on the increasingly serious

environment will bring mankind huge disaster, The

electric motor is small, does not pollute the

environment, does not emit exhaust gas, the noise is

very small so that people re-examine the pure electric

vehicle. Driven by capital, in those ten years, the

driving technology of electric vehicles has made

great development, pure electric vehicles have

attracted more and more attention, and small electric

vehicles began to occupy a fixed market, such as golf

course mobility scooters [4].

The biggest problem that hindered the

development of electric vehicles in the 1990s was the

lagging development of battery technology and the

market pressure of traditional car manufacturers to

develop hybrid cars to overcome the problem of short

battery and range. This time frame is best represented

by Plug-in hybrid electric vehicles and hybrid electric

vehicles. the plug-in hybrid is a kind of new energy

vehicle between pure electric vehicles and fuel

vehicles, which has the engine, transmission,

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Volume 6, 2024

transmission system, oil circuit, and fuel tank of

traditional cars. There are also pure electric vehicle

batteries, motor, and control circuit, and the battery

capacity is relatively large, and there is a charging

interface; It combines the advantages of pure electric

vehicle EV and hybrid electric vehicle HEV, which

can not only achieve pure electric and zero-emission

driving but also increase the driving range of the

vehicle through hybrid mode. -----hybrids electric

vehicle is a compromise between conventional

vehicles and fully electric vehicles: It simultaneously

uses the internal combustion engine of traditional

vehicles which can be designed smaller and the motor

of fully electric vehicles for hybrid driving including

battery and inverter links, reducing the demand for

fossil fuels and improving fuel economy, thus

achieving energy saving, emission reduction, and

greenhouse effect mitigation.

2. Research Background

At the beginning of the 21st century, with the

continuous development of science and technology,

the range of electric vehicles keeps increasing, which

can meet the needs of some residents in daily life.

Therefore, many electric vehicles pour into the car

market and get a part of the market share.

2.1 China Automobile Market

The People's Republic of China has a land area of 9.6

million square kilometres, which is the third largest

country in the world. The People's Republic of China

is the world's most populous country, according to

the latest statistics, about 1.42 billion people in the

China statistics bureau [5], at the same time, the

People's Republic of China is the world's second-

largest economy, gross domestic product in 2021

totalled $17.7 trillion, according to the international

exchange rates came second in the world, second

only to the United States, In purchasing-power-parity

terms, it ranks first in the world. China is the main

sales target market for major auto production

companies due to its vast land and large population,

good economic development, and sufficient

purchasing power of local people [6].

China's domestic car market has also continued to

grow rapidly since the country joined the World

Trade Organization in 2001. In 2009, for the first

time, China surpassed the United States to become

the world's largest auto producer and seller. The rapid

growth of China's automobile market benefits from

the market-oriented and liberalized economic

reforms and the increasing degree of opening to the

outside world. Although liberalization still has a long

way to go, it has attracted large amounts of foreign

investment and boosted imports of cars and auto

parts. At the same time, rising income levels,

continued urbanization, and the implementation of

China's economic rebalancing policy aimed at

increasing household consumption have all boosted

the demand for automobiles. Despite the large

volume of car sales in China, the car ownership per

1000 people in China was only 204/1000 in 2021. In

2019, according to World Bank statistics, the number

of cars per thousand people in China was only 173.

Figure 1. No of Vehicles per x1000 in 2019

2.2 China's Economic Development

China's economy, which has grown rapidly since the

country's reform and opening in the 1980s, has shown

a trend of contraction in recent years despite the

global economic downturn. China's economy has

maintained steady and sustained growth. In 2021,

China's gross domestic product reached 114 trillion

CNY, an increase of 8.1 percent compared with

China's gross domestic product in 2020 [7]. China's

disposable income is 35,100 CNY, up 9 percent from

2020. Chinese residents for transport and

communications consumer spending as much as 3156

RMB per person, compared with 2020 increased by

14.3%, so the Chinese residents for transportation

spending good trends, demand increased year by

year, and the economic situation is not good in the

world at present, the Chinese people have strong

consumption ability to buy cars, China's auto market

is a market with strong potential [8].

2.3 International situation

At present, the global energy and environmental

systems are facing great challenges, and the

automobile, as a major consumer of oil and carbon

dioxide emissions, needs to undergo revolutionary

changes [9]. The global development of new energy

vehicles has formed a consensus. In the long term,

pure electric drive, including pure electric and fuel

cell technology, will be the main technological

direction of new energy vehicles. In the short term,

gas-electric hybrid and plug-in hybrid will be an

important transition route. At present, the

development of global new energy vehicles is still

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facing some common problems, such as

breakthroughs in key technologies, the

transformation of the automobile industry,

infrastructure construction, and consumer acceptance

[10]. For example, the United States has long focused

on the strategy of reducing oil dependence and

ensuring new energy security. It takes the

development of new energy vehicles as an important

measure to fundamentally get rid of oil dependence

in the transportation field and determines the

strategic position of new energy vehicles in the form

of laws and regulations. During the Clinton

administration, there were programs aimed at

improving fuel economy, and hybrids were the main

technological solution. In the Bush era, it became a

pursuit of zero emissions and zero oil dependence.

The technical solution was mainly hydrogen fuel

cell vehicles. Later, there was a plan to achieve 20%

oil replacement and savings in ten years, mainly by

biomass fuel. Now. Developed countries such as

Europe, the United States, and Japan attach great

importance to the core content, using the

government, enterprises, and research institutions of

the R&D system for different degrees of research and

development. However, the differences in the basis

of the automobile industry, industrial advantages, and

development ideas in different countries eventually

form different technical emphasis routes. Japanese

companies take hybrid as their main models and have

developed gas-electric thermal hybrid technology

that can be applied on a large scale. Europe is

involved in the fields of thermal hybrid power

technology, pure electric vehicle technology, and

hydrogen fuel vehicle. Hydrogen fuel vehicle is the

focus of European research and development,

including both hydrogen fuel cell vehicle and

hydrogen internal combustion engine vehicle. In

addition, Europe is the world leader in the field of

biodiesel vehicle industrial applications. In terms of

technology research and development and industrial

practice of new energy technologies in the United

States, they mainly focus on hydrogen energy and

fuel cell vehicles.

In recent years, Tesla Company created by Musk

has achieved great success in recent years, gaining a

global reputation in the trolley field and becoming the

industry leader in the trolley industry [11]. In 2020,

Tesla sold 147,997 cars in China, of which 94% were

domestic Model 3. Its global sales volume is 499,550,

and the sales volume in the Chinese market accounts

for 29.6%. In 2021, the global registered sales

volume of new energy vehicles is 6,501,400. Tesla

wins the global sales volume with 935,700, which is

1.6 times of BYD in the second place, accounting for

14.4% of the global new energy passenger car

market. The pure electric market accounted for

20.3%. At the same time, the strong rise of Tesla also

leads the wave of the development of new energy

electric cars. More capital and talents enter the

industrial chain research and development of new

energy electric cars, injecting new vitality into the

new energy electric car industry. What follows is the

continuous improvement of market competitiveness.

Due to the new crown the spread of the epidemic that

began in late 2019 led to the development of the

global economy, the current decline in global chip

industry production, demand for the auto chip in the

new energy car is great, and a lot of chip

manufacturing industry chain supply can't support

the demand of the new energy car, also leading to a

fall in new energy capacity of electric cars, compared

with the rapid development of a few years ago, In

recent three years, the growth rate of the new energy

trolley industry has been reduced.

3. Literature review

New energy car entered the Chinese market, the new

energy market share increased year by year, and sales

of electric cars and ownership is in rapid

development, at present, China's vehicle ownership

according to figures released by China's transport

sector has been more than three hundred million

vehicles, but until 2021 the Chinese market of new

energy car market than just still account for 13% of

the total market share, In China, the main body of

automobiles is still fuel cars, which have stable

power output. After hundreds of years of

development, the vehicle manufacturing process

system is mature, and the supporting service system

of vehicles is gradually improved, so it still occupies

a leading position in China's automobile sales

market. However, the power source of fuel vehicles

is non-renewable fossil fuels, which can obtain the

target and ideal power output. However, the cost of

using these fossil fuels is to produce a large amount

of harmful automobile exhaust and noise pollution,

which will make the fragile ecological balance faced

with a more serious burden. For example: Forcing

global warming to intensify, leading to the loss of ice

in the Arctic and Antarctic, and extreme weather in

many countries and regions, these ripple effects will

cause untold harm to people in many regions [12].

Therefore, to reduce the occurrence of these natural

disasters that cause great harm to human beings,

increasing the market share of new energy trams is an

effective way, which also shows the potential

advantages of increasing the sales of new energy

trams and the correctness of selection. In China's

automobile sales market, before customers choose to

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buy a car, there are a lot of factors: the rationality of

the vehicle price, the exquisite appearance, the

collocation of interior decoration, the noise of the

vehicle, the comfort of driving, the use cost, and the

cost of later maintenance.

3.1 Forecast of passenger car market structure

and environmental impact analysis in China

Through the analysis of the current passenger car

market in China and the use of scientific digital

modelling --The Lotka-Volterra model, the purpose

is to predict the size of China's passenger car market

in the next 30 years and the proportion between fuel

cars and new energy trams [13]. According to this

literature, it is finally predicted that in the Chinese car

market in 2040, There will be a period of replacement

between old and new energy sources. The planning

of Chinese government decision-making

departments and Chinese new energy tram

enterprises will promote the new energy tram to

become the mainstream of the market. The Lotka-

Volterra model provides a new method to predict the

relationship between market share changes. It can

make comprehensive judgments from various aspects

under the action of comprehensive factors such as the

change in the international economic environment,

the fluctuation of China's domestic market, and the

change in the external natural environment. The

ultimate purpose is to predict the relationship

between new energy trams in the passenger car

market from the perspective of the overall market.

And the predictability of the growth of new energy

electric cars and the importance of social decisions,

to put forward policy suggestions [14].

From the perspective of market implementation,

to continue to vigorously promote new energy

electric passenger vehicles and to continue to

promote the proportion of new energy trams in

China's automobile market, China needs to give

higher priority to new energy trams, such as the

mandatory electrification of right-of-way, public or

shared fleets [15]. Meanwhile, the Chinese

government and enterprises should continue to

strengthen the research and development of

infrastructure, electric vehicle power batteries, and

charging and discharging technologies. The

government should focus on investing in the

construction of clean energy upstream of passenger

vehicles and strengthen the coordinated development

of the industrial chain of new energy electric cars.

Considering the direction of setting energy

conservation and emission reduction targets, China

should set different energy conservation and

emission reduction targets. In addition to achieving

the maximum possible energy conservation and

emission reduction targets through technological

innovation and green upgrading of each component,

the level of atmospheric environmental pollution and

some priority pollution sources should also be

assessed to achieve comprehensive energy

conservation and emission reduction and contribute

to the global ecological environment balance [16].

From the perspective of policy measures, policies

need to give technical subsidies to key enterprises

and related technologies, and incentives should be

slowly reduced. Use tax means to control the market,

and macro-control the market to promote the

progress of the new energy trolley industry and

strengthen the implementation. At the same time, the

establishment of a market exchange platform

between enterprises and the government to promote

mutual benefit and win-win results is in line with the

goals of China's Belt and Road Initiative

3.2 Who buys New Energy Vehicles in China?

Assessing social-psychological predictors of

purchasing awareness, intention, and policy

The literature investigates psychosocial factors to

explain why it is important for Chinese drivers to buy

new energy vehicles, including hybrid electric cars,

battery electric cars, and fuel-powered cars [17].

Using six test dimensions: attitude, subjective norm,

perceived behavioral control, personal norm, low

carbon awareness, and policy [18], the author

conducted a questionnaire survey on potential

customers and obtained three main findings: 1. Low

carbon awareness will have a slight regulating effect

and influence on the purchasing behaviour of

potential customers through psychological factors. 2.

The influence of subjective norms is far greater than

other social factors in customers' purchase intention

of new energy electric cars. 3. The government has a

positive influence on the new energy electric car and

plays a positive role in its development in terms of

policy tendency. The psychological factors affecting

customers in the purchase process are used to

objectively analyse the influence of these six

dimensions on the purchase of new electric cars.

3.3 The government regulation and market

behaviour of the new energy automotive industry

Environmental issues and cleaner production are

receiving increasing attention. Cleaner production

with low emissions and sustainable consumption are

of great significance. Traditional energy vehicles are

more and more unsuitable for the development of

today's society. New energy vehicles to accelerate the

replacement of traditional energy vehicles is the trend

in the current automobile market [19].

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Support for government's new energy automobile

market, the author has carried on the theoretical

research, set up, including domestic and imported

new energy automobile manufacturers, data model,

through the analysis of the model, this paper argues

that the government subsidies, tariffs, and other

supporting policies can effectively expand domestic

technology content low market share of new energy

vehicles [18]. But this approach is not sustainable, as

domestic NEVs with lower technology content can

only survive in the market by narrowing the gap with

imported brands. This paper establishes a

Stackelberg model with product price as the decision

variable and finds that when there is a technology

gap, the first-mover advantage in the market will no

longer exist. Finally, this paper compares the two

subsidy methods of domestic new energy vehicles

and finds that there is no difference between the two

subsidy methods and subsidizing consumers or

enterprises to expand market share [20].

Whether in the process of daily use or in market

recognition, new energy vehicles are temporarily

unable to be compared with traditional energy

vehicles. Therefore, in the market competition

between new energy vehicles and traditional energy

vehicles, the new energy vehicle industry needs to

rely on government support. In countries with

relatively backward technology, to ensure the healthy

development of the domestic new energy vehicle

industry. Governments also need to erect trade

barriers to reduce the impact of foreign products from

high-tech countries on domestic industries.

Under the premise of the same government

subsidy intensity, the government with the goal of

maximizing social welfare is more suitable to take the

way of subsidizing consumers to promote the

development of the renewable energy vehicle

industry. The principle of subsidizing consumers is

different from that of subsidizing producers. When

the government subsidizes consumers, an increase in

disposable income leads to an increase in demand,

which boosts production. The effect of government

subsidies on consumers is more direct than subsidies

to producers because the former avoids the

possibility of producer fraud.

3.4 Hierarchical optimization decision-making

method to comply with China’s fuel consumption

and new energy vehicle credit regulations.

To achieve the goal of carbon neutrality in 2060, the

Chinese government has put forward extremely high

requirements for energy conservation and emission

reduction in the new energy electric car industry [21].

The Chinese government's actions, due to fuel

consumption and new energy vehicle credit policy

system has a significant impact on China and even

the global auto market. Fuel consumption and new

energy vehicles in China lack credit laws and

regulations system evaluation model, based on the

technological frontier curve hierarchical

optimization decision-making model and contain

China market and technology, product and enterprise

data of database, using different algorithms for the

future development of China's market planning

industry feasibility of reasonable risk assessment. To

improve the regulatory evaluation model of

traditional fuel vehicles and new energy vehicles in

China by establishing a dual monitoring system, to

simulate and evaluate the technology compliance and

policy impact under multiple regulations [22]. The

authors put forward new ideas :

▪ A hierarchical optimization decision-making

method based on technology frontier curve is

proposed to guide the formulation and decision-

making strategy of the industry technology

roadmap of OEM.

▪ To evaluate the official credit supervision system

of China's automobile market and put forward the

quantitative evaluation of supervision synergy

effect and policy compliance, which is conducive

to the protection of the rights of producers and

consumers.

3.5 Key Literature Summary

According to the literature can be found in the

introduction of China's car is still in the traditional

fuel vehicles as the main market, new energy car is

still in after a few years the rapid development of

industry competitive disadvantage, so the analysis of

the Chinese consumers are bought on data modelling

using big data analysis summary, the influencing

factors of consumers shopping choice: the early stage

of the vehicle's price , the use cost of the vehicle

during the service period: energy use cost,

commercial insurance cost, and the maintenance cost

of the vehicle caused by the aging of the vehicle.

Secondly, the convenience of life, the comfort of

driving, and the power output of the vehicle are all

key considerations for consumers. At present most of

the city planning in China is behind The Times

development, led to the new energy vehicle parking

and charging has become a main problem of urban

development, the shortcomings of China's urban

infrastructure services are a normalized problem,

need spend a lot of time cost and government fiscal

spending to meet the current rapid development of

new energy car industry of high demand. From the

perspective of the development of The Times, the

development of new energy electric cars can delay

the coming of energy crisis and the use of non-

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renewable fossil resources to a certain extent, to seek

more time for the development of cleaner and more

convenient green energy. Another serious

environmental deterioration in today's international,

Eurasia up extreme climate, its basic reason is the

increasing industrial development and energy

consumption lead to a lot of pollution, the pollution

is global warming and greenhouse effect induced

catalyst, use clean green energy as the core power

output can alleviate this destructive global disaster.

With the development of science technology,

improving the core of the new energy battery

technology has become the field of new energy car

development acceleration and point to the policy, the

popularization and research and development in

terms of charging pile development, new energy car

companies provide different types of charging

service: alternating current (ac) slow filling and dc

fast charging service, in guarantee under the premise

of safety facilities for the product quality With great

improvement and help, improve the service quality

level of supporting services, provide a variety of

choices to meet different needs. To improve the

supporting service level of new energy trams and

make the use of new energy trams more convenient

and cost saving for consumers, will promote

consumers' car purchase tendency and decision

making. The goal is to increase the sales of new

energy trams, expand the social influence of trams,

and the theme of low carbon and environmental

protection fits each other.

China's government in policy of macro regulation

and control, from big help in the early development

of new energy industry and made clear instructions to

suit the Chinese market in the future, only the

continued expansion of China's new energy market

can mobilize more capital into the new energy

industry, resulting in more powerful production

power, and form a good circulation, complete carbon

neutral policy goals.

4. Research Methodology

Paper mainly research in the present international

situation is complex, the international oil price

volatility, international industry competition is the

increasingly fierce, increasingly severe ecological

environment, and under the condition of non-

renewable resources is used up big, the Chinese car

market as the world's largest market, between the

traditional fuel cars and new energy car market share,

does not conform to the international principles of

sustainable development [23], Chinese tram

companies and local governments need to make

positive decisions on the development and promotion

of new energy trams in the face of many pressures.

Through quantitative analysis of the social

phenomenon of quantity characteristics, quantity

relationship, and quantity change analysis and

demonstration, using the PEST analysis method for

the Chinese market to analyse all aspects of the social

macro environment, understand the potential of

China's new energy car market and rising space, at

the same time also analysis the development of

Chinese electric limitation and must be overcome.

The goal is to improve the limitations of China's

automobile market and enhance the sustainable

development ability of the market. In terms of

environmental protection, we can also reduce the

consumption of non-renewable fossil fuels and the

damage of automobile exhaust emissions to the

ecological environment by reducing the use of fuel

vehicles. Finally, realize the resource-saving and

environment-friendly Chinese automobile market.

By new energy for China in the recent ten years of

production and sales of electric vehicles, a new

energy car company in the last ten years of

production and operation, this paper analyses the data

report of the Chinese government white paper and

official documents issued by the transport sector,

China passenger car association's official data were

collected for reliable secondary data for

proofreading. The annual trend and future

development trend of the research data are finally

combined with the objective and external

environment of the Chinese market to make a

reasonable analysis of the small market share of

China's new energy trams and summarize the

difficult development process and make a

comprehensive discussion with PEST analysis. Also

need to consider the limitations of secondary data:

data correlation of poor, poor timeliness, accuracy,

poor, telling the development of China's market

competition pressure is great, in the new energy car

need to improve their own core technology, the core

technology of lead is superior to the traditional fuel

vehicles, some short to make up for their own can

quickly occupy the market more smoothly.

4.1 Research Philosophy and Approach

The methodology will use positivism, meaning that a

research problem will be demonstrated through

rigorous data analysis based on facts. In this article,

the cause of the development of China's new energy

car market downturn, the use of official data can be

collected second-hand to prove that China's new

energy electric transmission slower and less market

share, the comparative analysis to the data in

combination with the international environment and

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the situation of complex cases, through some

powerful measures to ensure the development of new

energy car, Prepare in advance for future energy

crises. Quantitative analysis and PEST analysis are

mainly used Through quantitative analysis, the

understanding of the research object can be further

refined, to reveal the law, grasp the essence, clarify

the relationship, and predict the development trend of

the market more scientifically. In the face of China's

auto market under the condition of unbalanced

development, through objective evidence that the

rational analysis of large data, the future of China's

auto market is to develop new energy cars as the

main, but the data analysis of the current 2021 come

out conclusion is that China's new energy car industry

compared with the traditional fuel vehicle is a

disadvantage, low market share. At the same time, it

also uses the PEST analysis method: politics,

economy, society, and technology to conduct a macro

analysis of the reasons for the small proportion of

new energy trams in the Chinese market. The macro

environment is used to make a comprehensive

discussion according to the external and internal

environment of China's automobile industry.

4.2 Research Theme and Objectives

4.2.1. Why do new energy vehicles have a low

share in the Chinese market?

According to the data from the China Association of

Automobile Manufacturers, the sales volume of new

energy vehicles in China from 2016 to 2021 has been

510,000 [24]. The sales volume of new energy

vehicles in 2016 accounted for 1.8% of the total car

sales volume in China.

Figure 2. EV Sales in China (2016-2021) [24]

In 2017 and 2018, the annual sales volume of new

energy vehicles increased by 53.3% and 61.6%,

respectively, entering a rapid growth trend. In 2019,

due to the economic downturn in the market, the

shortage of chips in the auto industry led to a decrease

in sales volume. The annual growth reached the

lowest in the recent five years, as the total sales

volume in China's auto market decreased, and the

share of new energy increased by 0.2% compared

with 2018 [24]. In 2021, China's new energy vehicle

sales had a dramatic growth, the sales of 3.52 million

new energy vehicles, the growth rate was as high as

157.6%, and new energy accounted for 13.4% of the

total sales [24].

Figure 3. Sales Accounted for EV [24]

According to the chart data, although the sales

volume of new energy vehicles in China is increasing

year by year, and the production capacity of new

energy vehicles is gradually increasing, the market

share is still far smaller than that of traditional fuel

vehicles after the development of recent years, and

the mainstream of China's auto market is still fuel

vehicles. New energy vehicles in the Chinese market

are still at a stage of development.

4.2.2 How to promote the development of China's

EV industry.

As an important part of the development of the future

era, new energy electric cars can not only reduce the

consumption of non-renewable resources of

traditional gasoline vehicles but also reduce the harm

caused by automobile exhaust emissions to the

human body. Therefore, the vigorous development of

the new energy vehicle industry is conducive to the

progress of The Times, and improving the market

share of new energy electric cars and fuel cars will

bring a lot of benefits. As an important part of the

development of the future era, new energy electric

cars can not only reduce the consumption of non-

renewable resources of traditional gasoline vehicles

but also reduce the harm caused by automobile

exhaust emissions to the human body. Therefore, the

vigorous development of the new energy vehicle

industry is conducive to the progress of The Times,

and improving the market share of new energy

electric cars and fuel cars will bring a lot of benefits.

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4.2.3 Add the sales of new energy vehicles to

improve the market share of the Chinese

automobile market.

The emission of electric vehicle exhaust and large

consumption of non-renewable fossil fuels will

further deteriorate the unstable ecological balance.

According to the current trend of The Times,

increasing the sales of new energy vehicles can

effectively solve the problem of environmental

deterioration and improve the quality of life of

residents. Rational use of renewable energy instead

of fossil fuels, to ensure the sustainable development

of the world's resources, and further make a good

plan for human life planning in the future. In addition,

the power source of fuel for cars is mainly oil, as a

crude oil importer, China's great dependence on oil

imports, with the international economic situation is

not optimistic in recent years, the international oil

price volatility, excessive reliance on a large number

of imported crude oil to ensure that domestic

demand, will lead to the national energy security

threatened by the international oil price fluctuations,

is not conducive to the steady development of China's

economy.

Figure 3. China’s Crude Oil Imports [25]

4.2.4 Enhance market competitiveness.

The research and development of new energy

vehicles are conducive to stimulating product

upgrading and technological innovation in the

automobile market, mobilizing the enthusiasm of

automobile companies to research and develop new

technologies, and finally contributing wonderful

products to meet the needs of human production and

life as well as the environmental protection

requirements of nature in the competitive market.

Finally, create a more perfect new energy vehicle to

serve mankind. Only enterprises in a crisis will have

enough motivation to improve the deficiencies of

enterprise products, through product optimization

and promotion to comply with the trend of market

development. China's new energy car companies

compared to the United States of the tesla, gm group,

such as Germany's Volkswagen group started late,

the top technical level is not enough, the perfect

degree of the industrial chain is also less, so the new

energy car enterprises in China need to rely on a

series of economic and policy measures to effectively

improve the market competitiveness in the industry

and can secure their market share, Ensure the

sustainable development of the enterprise itself.

4.2.5 Environmental protection

Energy saving and emission reduction, reduce the use

of fossil fuels, reduce the environmental harm caused

by the exhaust gas of fuel vehicles, the adverse

impact on human health, and create a more

harmonious society. It has attracted worldwide

attention since the 1990s. Among them, the car-

oriented transportation area in the city has become

the biggest battlefield for emission reduction.

Countries around the world have issued strict

automobile exhaust emission standards, and energy

conservation and environmental protection have

gradually become the hard requirements and key

factors for the development of the automobile

industry. Electric vehicles to meet the needs of

environmental protection have emerged. In

December 2015 [26], nearly 200 countries and

regions under the United Nations Framework

Convention on Climate Change reached the Paris

Agreement at the Paris Climate Change Conference

[26]. It is the second legally binding climate

agreement after the Kyoto Protocol and sets out

arrangements for post-2020 global action on climate

change. Increasingly stringent environmental

protection protocols will speed up the electrification

process. In Europe, there are many developed

countries that have already planned to realize real low

carbon travel, improving the structure of Europe's

energy use, currently in one of the most successful

European countries, Iceland, is just the energy use of

Iceland is more than 98% of its energy from

renewable green energy, truly the status of the

sustainable development of the energy [27]. China

aims to achieve zero carbon emissions by 2060, At

present, China is extremely dependent on fuel

vehicles. At present, the volume of fuel vehicles in

China is large, and it is difficult for China's

automobile market to carry out the new energy

transformation, and the transition time required is

relatively long. Now, the technology of new energy

trams needs to be improved, which will bring the

development power to the industry under the

incentive of the target. Therefore, measures should be

improved before the general premise of improving

the environment. The ultimate purpose of this

research is to realize a resource-saving and

environment-friendly society.

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Satya Shah, Linghan Zhang

E-ISSN: 2692-5079

Volume 6, 2024

5. Research Analysis and Results

Through quantitative analysis and PEST analysis

method, from the aspects of policy, economy,

society, and technology perspective analysis of the

subjective and objective factors of the status quo, get

the improvement of China's new energy car industry

and clear goals, the final summary analysis and give

effective strategies and Suggestions to promote the

sustainable development of China's new energy car

industry.

5.1 Pest analysis method

The political system, economic system, fiscal policy,

tax policy, industrial policy, investment policy.

The Chinese government's policy on the new energy

tram industry is constantly changing with the change

of time. China has determined the development

strategy of new energy vehicles and supported the

development of the industry chain of new energy

vehicles. The marketing of new energy vehicles has

been favourable. Since new energy trams entered the

market, the Chinese government has given strong

support in terms of policies. New energy automobile

vehicle tax shall be exempted, new energy vehicles

shall be exempted from tax, new energy automotive

subsidies, adjustment of new energy subsidies,

government agencies and public institutions to

purchase new energy vehicles plan for a series of

measures such as new energy car policy to protect the

new market, new energy vehicles sales in China's

auto sales market has a good start,

China's state council released in May 2015 policy

- "made in China 2025" [28]. The main purpose was

to support the development of China's automobile

industry, encourage enterprises to actively master

automobile low carbonization and intelligent core

technology, promote new energy power batteries for

electric vehicles, drive motor, transmission, vehicle

research and development of core technologies such

as artificial intelligence. It also enabled to form a

complete production system from key parts to vehicle

production, and ultimately promote the development

of Chinese domestic brands, to shorten the distance

between the international auto companies with

advanced technology [28]. In December 2016, The

State Council of China issued the 13th Five-Year

National Strategic Emerging Industries Development

Plan, which set a goal for the development of new

energy electric cars, aiming to achieve the production

of two million and the sales of new energy electric

cars over five million by 2020 [29]. In addition, with

the support of policies, enterprises related to new

energy trams can gain more international

competitiveness in the competition of China's

automobile market. In April 2020, the Ministry of

Finance, the State Administration of Taxation, and

the Ministry of Industry and Information Technology

of China issued a new policy -- "Announcement on

the Relevant Policies of the Exemption of Vehicle

Purchase Tax for New Energy Vehicles". The

Chinese government actively and positively guided

the development of new energy vehicles from

January 2021 to December 31, 2022, to reduce and

exempt the purchase tax for new energy vehicles.

However, with the growth over time, the subsidies

for new energy vehicles decline, and the

government's support decreases. According to the

official documents of the Chinese government, since

2015, the Chinese government has given huge

preferential welfare policies to support the

development of new energy electric cars in the

market. To help the new power of new energy electric

cars to hold the market share, the financial subsidies

of the policy are surprising. Until 2019, subsidies for

new energy trams with a range of less than 250km

will be exempted, and subsidies for more expensive

and longer-range models will be reduced, gradually

making new energy trams adapt to the pace of

competition in China's auto market.

Despite the Chinese government's strong policy

support for the development of new energy trams The

outbreak of the COVID in 2019 to now, the world

economy, also led to the government's fiscal income

reduction, reduced subsidies for new energy cars,

also reduce the buyer's shopping enthusiasm for new

energy cars [30], according to the data analysis in the

future forecast China's push to achieve the goal of

carbon neutrality date will be delayed with the

change of the policy. Once the policy does not give

financial subsidies, the price of new energy trams at

the same level is much higher than that of traditional

fuel planning, which will reduce the competitiveness

of new energy trams in the automobile market.

5.2 Economic environment

China's second-hand car market is too large, and the

market competition pressure According to the

Ministry of Public Security, the number of motor

vehicles in China reached 395 million in 2021,

including 302 million cars; The number of motor

vehicle drivers reached 481 million, of which 444

million were automobile drivers [31]. In 2021, 36.74

million motor vehicles were newly registered, with

27.5 million newly licensed drivers. The number of

new energy vehicles reached 7.84 million. By the end

of 2021, the total number of new energy vehicles in

China reached 7.84 million, accounting for 2.60% of

the total number of vehicles. Excluding scrap notes,

the sales volume increased by 2.92 million compared

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E-ISSN: 2692-5079

Volume 6, 2024

with 2020, an increase of 59.25%. Among them, the

number of pure electric vehicles is 6.4 million,

accounting for 81.63% of the total number of new

energy vehicles [31].

The number of car transfer registrations in China

continues to grow. In 2021, China's public security

traffic administration departments handled 30.48

million motor vehicle transfer registrations. Among

them, 29.23 million cases of car transfer registration

business, accounting for 95.90 percent. In the past

five years, the proportion of transfer registration of

second-hand cars and registration of new cars has

increased from 0.67 to 1.11, which is more than the

registration of new cars. Under the positive boost of

the policies such as the cancellation of the "relocation

restriction" of second-hand cars and registration of

second-hand cars in other places, the second-hand car

trading market has become increasingly active. A

used car in the car market tends to have better cost

performance and can let customers use lower prices

to get the ideal models, with the continuous

development of social informatization, China's

second-hand car trading market is increasingly

mature and transparent, and the rights and interests of

consumer protection are doing more and more in

place, avoid the dealer to buy the high-priced trick,

poor quality of used cars, The normalization of the

market will allow used cars to have a better priority

in vehicle selection and family utility. Car price is

one of the main factors affecting the choice of car.

Due to the rapid development and innovation of

new EV, the emergence of new technologies will lead

to the reduction of the market value of the previous

generation of trams, and lead to a low rate of car

retention. Car retention is also an important

consideration for Chinese customers before they buy

a car. The development of new energy electric cars is

like that of smartphones a few years ago. While

developing rapidly and occupying a certain market

share, the technology is also constantly improving,

and the price is constantly optimized. For example,

when Tesla first entered the Chinese market, the price

of Model3 reached nearly one million CNY. After

several years of upgrading and the establishment of a

Tesla factory in Shanghai, China, Tesla increased

Tesla's output. The price of Tesla Model3 has been

reduced to 300,000 RMB, and the price of Model-Y

has been reduced to 700,000-1 million RMB from

nearly 2 million RMB in the past, depending on the

cheap labour force and preferential policies in the

Chinese market as well as the local material selection

with high-cost performance. Therefore, the model of

the new energy tram is too fast for the new one, which

will cause the value of the sold vehicles to depreciate

substantially.

Parts-to-Whole Price Ratio

The parts-to-Whole Price ratio of an automobile is

the ratio between the sum of the parts price of a

specific model and the sales price of the whole

vehicle. As a durable consumer product, the initial

purchase cost and subsequent use cost of an

automobile are both large expenses. Therefore, the

larger the zero ratios are, the more money needs to be

spent on the later maintenance of the vehicle.

Therefore, when buying a car, customers also need to

consider the zero ratios of the car into the cost of

using the car, which leads to the high Parts-to-Whole

Price ratio of the car will increase the cost of using

the car and lead the change in the choice of buying

the car. The high battery maintenance cost of new

energy trams is an important factor affecting car

sales. The replacement price of power batteries for

energy vehicles is determined by battery capacity,

brand, and process type. , as the core parts of new

energy vehicles, power battery costs are generally

accounted for 40% to 60% of the cost of a car, and if

the new energy car battery technology, carrying on

the new energy electric vehicle battery model and

types are different, so the process is more

complicated, the technology is more advanced

battery technology extra costs will be higher than the

market average. When customers understand

LingZheng than data, the consumer is relatively clear

in replacement of parts of the maintenance cost and

the link between the vehicle price, to know the

maintenance cost differences between various

brands, various models, to a greater degree under the

existing conditions of increase consumers' right to

know and options, high LingZheng than is new

energy car sales slow growth in one of the original

Use Cost of Vehicle

New energy car on use cost depends on the country's

lower prices, can be achieved with new energy car

use cost low, 0.2 to 0.4 CNY per kilometres, and then

the use of traditional fuel vehicle costs will change

with fluctuations in international oil prices,

represented by 2.0 t fuel vehicle, the fees will be in

0.9 to 1.2 CNY per kilometres of transport costs. It

can be clearly seen that in terms of the use cost per

kilometres, the new energy tram can save several

times the energy payment per kilometres.

On December 27, 2021, the exclusive insurance

of new energy vehicles was officially announced, and

12 mainstream property insurance companies began

to sell exclusive new energy vehicle insurance

products simultaneously. The biggest change is that

the premium of new energy vehicles is rising,

especially since the insurance cost of electric vehicles

is more expensive. The commercial insurance

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E-ISSN: 2692-5079

Volume 6, 2024

structure of insurance companies, commercial

insurance for electric vehicles begins to pay attention

to the safety of the vehicle itself, especially the safety

of the battery, as well as the possible losses caused to

other vehicles by the occurrence of spontaneous

combustion and deflagration. Therefore, under the

new exclusive insurance, the battery, electric control,

electric drive, as well as charging pile outside the car

are covered by the insurance! And the maximum

three insurance coverage of new energy vehicles can

be increased to 40 million CNY. In fact, from the

point of view of insurance companies, electric

vehicles based on new energy vehicles substantially

increase the premium, because electric vehicles

related to accidents or unilateral accidents, easy to

cause greater losses, such as the general fuel car

parked in the parking space, after the flare out,

generally there is no potential danger; However,

when a new energy vehicle is parked in a parking

space for charging, it is normal for the car to be

burned down in case of fire or deflagrate, which will

also damage other vehicles. To reasonably avoid

risks, the premium of the new energy trolley rises.

However, the comprehensive annual use cost of fuel

vehicles and new energy electricity will find that the

use cost of new energy tram for owners with small

vehicle demand will be higher than that of fuel

vehicles, so the advantage of low expenditure of new

energy vehicles will be lost, which will affect the

choice of consumption.

5.3 Social environment

China, the third largest country in the world, is in the

east of Asia. The terrain of China declines from west

to east, and the terrain is complex and diverse: plains,

hills, mountains, pelvic floor, plateaued, depressions

and other different topographies are intricately

alternating. The density of population is a state of

population distribution gradually decreasing from the

southeast coastal zone to the interior. The dense

population in the southeast coastal zone and the

mature highway planning in the flat plain and hilly

areas are well developed. The economic development

of the provinces in the southeast is far beyond the

economic development of the inland areas.

Therefore, the objective geographical location factors

have led to the unbalanced development of China's

urban economy, and the degree of urban economic

development has gradually decreased from

developed to backward from the southeast coastal

areas to the inland areas. As a result, the consumption

ability of southwest, central, and northwest China is

limited, the ability to buy transportation tools is

insufficient and the market potential is low. In

addition, in China's northeast and northwest regions,

new energy electric vehicles do not perform well in

adapting to harsh natural conditions. In winter, the

temperature in northeast China can reach below zero.

According to the test results of current new energy

trams, vehicle endurance and power are facing great

challenges. In the face of the hot weather conditions,

the power consumption of the new energy car project

increase, and the vehicle's power output more, less

range, in addition, most of the new energy car range

is provided by the company under the condition of

the ideal state of the argument, once the vehicle

within open most of the electronics to produce

electricity can influence range, There is a risk that the

vehicle will stall or stall during use. Therefore, in the

face of a complex geographical environment, the

labelled range is not consistent with the actual

mileage, and most fuel vehicles have been proven to

have better performance in the face of these special

road conditions after decades of practice. According

to the winter endurance performance of six pure

electric cars released by the China Automobile

Research Institute, the winter endurance decline rate

of electric cars is more than 30%, among which the

standard endurance of Model 3 models is 36.9%; The

endurance decline rate of NIO EC6 was 42.1%; Byd

Han endurance decline rate of 30.9%; Xpeng P7

endurance drop rate is 42.3%; The BMW iX3's range

drop rate was 36.6%; Ne Zha Pro 500 lunar version

has an endurance drop rate of 42.4%.

China is the biggest developing country in the

world, starting in the 1980 s reform policy

development to the present, the urban planning layout

is affected by the original backward city layout, only

in the original city based on improvement and

adjustment, optimize the structure of urban planning

and so most of the layout of the city is limited by the

past layout, There is a shortage of charging piles and

parking Spaces in cities.

With the development of China's new energy tram

market, car sales are also increasing year by year.

However, with the development of new energy trams,

supporting facilities in cities need to be improved,

such as the development of charging piles. The

endurance of the new energy tram relies on the output

of electricity to provide the power source of the

vehicle running, which is the core of the tram moving

forward. Therefore, to ensure the endurance and

normal use of the vehicle, it is necessary to timely

charge the new energy tram. Due to the surging

development momentum of new energy electric

vehicles, the demand for charging piles also

increases, and the growth rate of vehicles exceeds the

growth of supporting facilities, resulting in the

phenomenon of more charging piles and fewer

charging piles for new energy electric vehicles. The

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E-ISSN: 2692-5079

Volume 6, 2024

high installation cost of private charging piles will

increase the car cost for customers, which will

increase their concerns when buying cars. In

addition, when installing private charging piles, it is

necessary to declare with the local community and

property management, and the complicated handling

process will also affect the car purchase choice.

In the planning of supporting facilities in the city,

there are few public charging piles, and public

transportation tools such as buses need to be met first,

while the charging demand of private new energy

trams cannot be met. China is also a highway power,

by 2021 China's highway traffic mileage of 169100

kilometres, inside of highway service area for

charging pile supporting is less, can meet a lot of new

energy car on the highway in the demand for

charging, so often appear in the service area in long

lines such as charging pile. These objective

conditions also affect the choice of new energy

electric cars for potential customer purchases.

And after 2008 years in China, the real estate

industry is developing rapidly, but at the time parking

planning is designed based on per capita vehicle

ownership at that time, which also led to the many

old residential space planning in China can't keep up

with the growth of the vehicle speed, parking is

always difficult for owners can become a headache

problem, when can meet the case, car parked The

charging demand of electric cars is more difficult to

meet. In cities with a large proportion of old urban

areas, it is difficult to effectively increase the sales

volume and market share of electric cars. These

objective infrastructure conditions also hinder the

promotion of new energy electric cars in many areas.

In addition, private charging pile installation is

difficult, such as the capital of China, Beijing

residents install private charging pile is the premise

of the need for charging pile installation by means of

a lottery, then also need and residence of the

residents' committees and the examination and

approval, after multiple processes to install personal

charging pile, so private charging pile installation

process is complicated, Multiple installation

conditions. Also led to the low enthusiasm of many

residents to buy new energy electric cars. For the

installation of private charging piles, a sum

installation fee is generally between 3,000 and 5,000

RMB, and the owner of the tram also needs to pay the

installation fee personally. There are still many

challenges in the installation of public charging piles

in communities. According to the national conditions

of China, parking Spaces in most communities

belong to community owners rather than individuals,

and the disassembly and installation of public

facilities can only be carried out with the consent of

all community owners or more than 80% of owners.

Due to the inconsistency between the interests of fuel

car owners and the interests of new energy electric

car owners, as well as the normal social problem of

tight parking spaces, public charging piles in many

communities are not installed and popularized. This

means that when it comes to charging new energy

electric cars, owners need to go outside the

community for charging. The owner of the new

energy tram needs to pay more effort into

successfully charging the vehicle to meet the normal

use of the next day.

5.4 Technical environment

The production of new energy vehicles in China's car

companies, the new energy car battery life, and

charging capability has been the development of new

energy car, Tesla, GM and so on the international big

group for China's car companies for new energy car

battery technology limited, contributed to the local

Chinese car company's market competitiveness,

Therefore, China's new energy electric car company

still has great room for improvement in the

competitiveness of transnational electric car in the

world [32]. Over the past decade, electric vehicles,

driven by rapid advances in lithium-ion battery

technology, have dramatically transformed the

automotive industry globally. However, fire risks and

hazards associated with high-energy batteries have

become a major safety concern for electric vehicles,

where thermal runaway or fire can occur due to

extremely abusive conditions, which can result from

faulty operations or traffic accidents. Then, the

failure of the battery can be accompanied by the

release of toxic gases, fires, jet flames, and

explosions. Common causes of electric vehicle fires

include spontaneous combustion of parked vehicles

due to arson or continuous abuse, such as fire during

charging, spontaneous combustion while driving, and

fire after traffic accidents such as high-speed

collisions. Social security factors caused by these

batteries are all important factors affecting car

buyers' purchase choices [33]. As an inevitable

choice for the future development of new energy

trams, safety investigation in the driving process is

the priority. At present, Chinese automobile

enterprises lack the technical level to solve the fire

caused by lithium batteries. At present, the charging

technology of new EV can be divided into DC fast

charge and AC slow charge [34]. However, the

difference between a fast charge and the slow charge

is that the slow charge uses standard charging current

for charging, while a fast charge uses several times or

even tens of times of current higher than the standard

charging current for charging. AC charging pile,

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E-ISSN: 2692-5079

Volume 6, 2024

commonly known as "slow charge": mature

technology [35], low barriers, low construction cost,

but low charging efficiency, suitable for public

parking lots, large shopping centres, and community

garages, AC pile has low requirements on the

transformation of the power grid. It needs to change

voltage and rectify the AC power of the power grid

through the vehicular charger first, and then charge

the car battery after converting it to direct current.

Therefore, the charging speed is slow, and it usually

takes 6 to 8 hours to be fully charged. DC charging

pile, commonly known as "fast charging": high

power, fast charging, but complex technology and

high cost, suitable for professional centralized

operation and maintenance scenarios, such as buses,

buses, taxis, etc. The DC charging pile can complete

voltage converter rectification through its own

AC/DC charging module and convert the input AC

power into the DC power required by the trolley. The

power of the DC pile is usually above 60KW. In

2020, the power of the newly added DC pile reaches

131KW. Dc piles have high requirements on the

power grid, which requires the construction of a

special network and equipment such as harmonic

wave suppression devices. Therefore, they are mostly

installed in centralized charging stations and

managed by operators.

The vehicle pile ratio is one of the key indicators

to measure the degree of charging pile construction.

Since China National Point Network fully opened the

construction of public piles in 2014 and The State

Council put forward the strategic target of a 1:1

vehicle pile ratio is 2015, the proportion of the market

retention rate of new energy trams and charging piles,

From 8.8:1 in 2015 to 3:1 in 2021, the charging

support has been significantly improved. Although

there is still a gap between the 1:1 vehicle pile ratio

and the target proposed earlier, the enterprise has

verified the rationality of the vehicle pile ratio in

practical application by adjusting the way of

construction. With the increase in battery capacity

and DC charging pile power, the user's focus will

change from charging pile quantity to charging pile

quality.

Reasonable public charging pile layout, power

charging piles, and piles of private construction will

offset part of the demand on public charging pile

number [36], pile than expected, according to the

ownership change car hard to volatility in the short

term, medium and long term considering the

sustained and rapid growth of new energy car

ownership, so charging pile of form a complete set of

equipment will be as the growth of the time will be

improved [37].

6 Conclusions and Recommendations

China's market is too large, which also leads to the

fact that once the Chinese government announces

new policies, the desired effect cannot be achieved in

a short period of time. In addition, China's national

conditions determine that The State Council, after

issuing new policies, conducts macro-control on the

market and sets the general direction. Each provincial

administrative department will need a policy based

on the local actual situation of specialized processing,

and every city in China does not match the demand

for the new trolley, city of supporting facilities, such

as China's Shenzhen, as a small fishing village from

the last century 80 developed into China's cities, The

reserve of urban planning and urban allocation

facilities is more in line with the requirements of

modern development. China's Xinjiang has a vast

landform, and the desert adjacent occupies most of

the area, so the local demand for vehicles is mainly

SUVs with excellent endurance and off-road ability.

Most cities are tens of kilometres apart, and most of

them are deserted deserts. Therefore, the

implementation of policies in these special areas is

less than expected [38].

It takes too long for China's policy

implementation to be effective. European countries

can quickly make plans to achieve zero carbon

emission according to their own conditions, while

China's huge volume needs a long transitional period

to achieve a zero-carbon emission target.

Battery charging technology, the core technology

of new energy trams, is not perfect. As the largest

developing country, the allocation of charging piles

in most cities of China cannot meet the changing

needs of all new energy trams, and the scarce parking

Spaces in big cities cannot meet the changing needs

of new energy trams. In addition, drivers need to

waste a lot of time and energy in the process of

looking for charging piles and waiting for charging.

These objective factors will affect the subsequent

choices of other potential car buyers. Therefore, the

research and development and breakthrough in

battery technology of new energy trams are the power

source of the development speed of the tram market.

China's government and new energy car

enterprises should develop new energy cars in

strategic decisions in the target customer purchase

priority, the government on policy support, enterprise

in technology and service in the industry to improve

the service quality and optimize the product efficacy,

from upstream to downstream industry chain in all

aspects of upgrading and development, shake to the

dominance of traditional fuel cars at present.

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E-ISSN: 2692-5079

Volume 6, 2024

6.1 Key Recommendations

Publicize the advantages of new energy vehicles.

The popularity of new energy trams is the trend of the

future development of The Times. Therefore, the

government and enterprises need to do a good job in

publicity and make the advantages of new energy

trams:

[1]. Use electricity as the power source, instead of

non-renewable fuel, reduce the consumption of

non-renewable fuel, and save energy.

[2]. Reduce automobile exhaust emissions and

contribute to the protection of the environment.

[3]. With the fluctuation and rise of international oil

prices, the use of new energy trams can

effectively reduce the use cost per kilometres.

[4]. The noise of new energy electricity is low, and

the noise pollution in the society is reduced.

Publicity was carried out through social media

and public platforms to improve the public's

awareness and popularity of new energy trams.

Improving the technical research and development

of enterprises and improve the defects of new energy

vehicles.

New EV companies need to spend more on R&D

funds and manpower to improve the enterprise's core

technology, the purpose is to improve the shortage of

the new energy car: charging low speed, low car

battery life, trams for environmental adaptability of

the weak, the autopilot of artificial intelligence,

emergency auxiliary safe driving, automotive

electronic components failure rate higher. Improve

the market competitiveness of new energy trams

compared to traditional fuel cars, seek more market

share of sales, and become leading car industry.

New EV enterprises should also actively respond

to local policies and policies and interpret the

development direction and profit points of enterprises

from the new policies issued by the government.

While gaining more economic benefits, they should

also continuously assume social responsibilities, save

energy and reduce emissions, and make their

contribution to the mitigation of global warming and

greenhouse benefits.

In terms of the endurance capacity of new energy

vehicles, automobile enterprises can actively

research and develop electric changing technology.

Compared with the energy replenishment of batteries

of new energy trams by charging piles, the

popularization and research, and development of

electric changing technology is a more excellent

choice. So far as the new energy car market share

increase year by year, the popularity of charging pile

speed and urban coverage are unable to meet the

objective demand of residents use the user and the

contradiction of charging is increasingly intensified,

charging and slowing the development of new energy

car is the limited and short board, Tesla, BYD, xiao

peng, the new energy car super-fast charging device,

Compared with the previous slow charging

equipment, the charging time is reduced and the

charging efficiency is increased, but it is followed by

the acceleration loss of the Dianchi lake of the new

energy trolley and the increase of the charging cost.

The appearance of the invisible super-fast charging

cannot solve the core problems of charging difficulty

and slowness. In addition to the uneven distribution

of the public charging pile, super quick charge

involves many on behalf of the interests, the interests

of the distribution of meeting, cannot be obtained by

slow speed for the popularity of the market, so in the

way of a battery, appear have a reasonable

opportunity for the development of electrical

technology, also cannot leave China local policy

support and huge capital market to promote.

According to the latest financial statements and

annual summaries of new energy companies,

Xinneng Electric Car company attaches great

importance to the research and development of core

technologies. Research and development costs

account for a large proportion of sales revenue.

Companies with a high proportion of the electric car

market will devote more resources to technology

research and development.

Strengthen the infrastructure construction of

charging supporting facilities.

The urban planning department of the Chinese

government needs to actively carry out urban

planning in line with the needs of The Times.

Reasonable planning should be carried out for

supporting municipal facilities based on urban

foundations such as urban changing stations,

charging piles, and public parking lots, to improve

the popularity rate of supporting facilities for new

energy trams in inland cities. Starting from the

government's upper-level design, public charging

facilities should be improved to improve more

convenient charging services for the people.

According to the current world economic situation,

the Chinese government can upgrade and construct

supporting facilities in batches according to the needs

of different regions for supporting electric cars,

strengthening cooperation with social capital, and

encouraging more private capital to participate in

supporting infrastructure construction of new energy

with policy support.

Engineering World

DOI:10.37394/232025.2024.6.7

Satya Shah, Linghan Zhang

E-ISSN: 2692-5079

Volume 6, 2024

Strengthen the construction of the power

replacement stations.

The battery technology of new energy trams has

always been a social problem, and it cannot make a

great breakthrough in a short time. Therefore, the

core problems of battery life and charging, such as

too long charging time, uneven distribution of

charging piles, few charging Spaces, and the

contradiction between the parking space occupied by

fuel cars, are difficult to be fundamentally changed in

a short time. The construction of the replace power

station can meet the demand for rapid charging of

most trams in a short period of time. The advantages

are as follows;

[1]. The power replacement mode realizes the

separation of electric power and is conducive

to reducing the cost of car purchase. With the

reduction of subsidies for new energy vehicles

by the Chinese government, the price of new

energy vehicles at the same level is higher than

that of fuel vehicles at the same level, relative

to fuel vehicles with more mature technology

and industrial chain. Under the power

replacement mode, users can rent the power

battery, which greatly reduces the cost of

buying a car [39].

[2]. The consumption time of battery

replenishment is short. Taking the current

power replacement station in Beijing, China as

an example, EV can complete battery

replacement in 2 minutes. Compared with the

charging demand of 6-8 hours for slow

charging and 0.5-1 hours for fast charging, the

power replacement station has a better

performance in time saving.

[3]. It is conducive to the battery safety and service

life extension of new energy batteries. The

batteries of the power station are monitored,

managed and maintained by the battery

company, so that the batteries of EV can be

more professionally maintained and more

professional and reasonable.

[4]. It can solve the voltage load requirements of

many old residential areas in China, so that

these residents can get effective power

supplement. To solve China's livelihood

problems [40].

6.2 Key Research Limitations

The promotion and development of new energy trams

will inevitably face some social and moral problems.

For example, while new energy trams provide high-

quality services, personal information and data will

also be collected by new energy trams, and personal

privacy security will be ensured: The security

protection of personal data such as a home address,

common routes, and emergency contact information

of family members, as well as the huge supporting

industrial chain of fuel vehicles and corresponding

social work positions in China, because most of the

positions of new energy trams rely on big data

analysis and artificial intelligence services [41]. This

has led to a significant reduction in the number of

jobs available for employment compared to those

available for conventional fuel vehicles, and the

social employment rate is also part of the ethical

considerations.

The data in this paper are mainly secondary, and

the data sources are mostly official data statements:

Ministry of Communications of China, Ministry of

Industry and Information Technology of China,

Although the data of the National Bureau of

Statistics, China Passenger Car Industry Association,

and the annual statements of enterprises are highly

credible and credible, the data are delayed to a certain

extent, and the optimal solution cannot be obtained

according to the latest national conditions.

As a developing country, China's city

development is not balanced, charging infrastructure

of the city construction and reconstruction is

significant fiscal spending, for the local government's

budget is a great challenge, in the prophase of in

power station built huge investment, need the

financial support of local government and private

capital to cooperate, otherwise only on unilateral

fastidious cannot meet the needs of urban planning

Design needs, as well as the needs of residents to

change electricity [42].

Different brands of new energy car battery design

inspiration are not the same, also contributed to

different specifications and installation guidelines, no

uniform industry standard on the market at present,

has led to the part in power station need only provide

models as the place of the battery, there is no

guarantee that all the models can enjoy the advantage

of the benefits in the power station. The battery

model reserve of the electrical charging station needs

to conduct big data analysis and demonstration

according to the reserve quantity of new energy trams

in different regions, to obtain the ideal distribution

quantity and meet the demand of the local market.

Therefore, the calculation volume of these data is

large, the data changes quickly, and the matching

degree of the market is low. In terms of the later

operation cost, the electrical charging station needs

higher technical services to maintain, maintain and

upgrade the equipment during operation.

Engineering World

DOI:10.37394/232025.2024.6.7

Satya Shah, Linghan Zhang

E-ISSN: 2692-5079

Volume 6, 2024

The challenges faced by the power replacement

station are the large capital investment needed in the

early stage, the constantly changing market matching

degree, the difficulty to unify the battery standard,

and the low market compatibility, it can only solve

most owners' charging demands. There will be less

room for small businesses and less enthusiasm for

research and development. Therefore, The

establishment of the power replacement station has

advantages and disadvantages, which should be

decided by combining with the actual development

situation of local electric vehicles.

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Contribution of Individual Authors to the

Creation of a Scientific Article (Ghostwriting

Policy)

The authors equally contributed in the present

research, at all stages from the formulation of the

problem to the final findings and solution.

Sources of Funding for Research Presented in a

Scientific Article or Scientific Article Itself

No funding was received for conducting this study.

Conflict of Interest

The authors have no conflicts of interest to declare

that are relevant to the content of this article.

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Engineering World

DOI:10.37394/232025.2024.6.7

Satya Shah, Linghan Zhang

E-ISSN: 2692-5079

Volume 6, 2024