Prospects of China's New Energy Vehicle Industry

The development of new energy vehicles has become the consensus in the world. To realize the goal of"lowering carbon dioxide emissions per unit of GDP by 40% to 45% in 2020 compared with 2005", and the historical missions of"corner overtaking" in auto industry, Chinese government has also listed the development of new energy vehicle as one of the seven strategic emerging industries. This study concludes that the development of new energy vehicles can achieve energy-saving and emissions reduction, but we are also facing many problems such as consumer's recognition, financial risk of the government subsidy, slow electric facilities construction, underdeveloped battery technology and so on. In order to promote the development of new energy vehicles, the government and enterprises should work together to promote the battery research and related infrastructure constructions, while private capital should be introduced to control financial risks brought by subsidies.