Pricing Strategies of New Energy Automobile and Traditional Vehicles in the Post-subsidy Epoch

Abstract

With the substantial decline in subsidies for new energy automobile, the domestic new energy car industry has undergone "earth-shaking" changes, and the market scale of these new energy automobiles have continued to decline. Even some auto parts suppliers went out of business. At the same time, with the introduction of Tesla in the Chinese market and the continuous expansion of the market size, the pricing strategy of Tesla in the Chinese market, domestic new energy vehicles and traditional fuel vehicles has undergone tremendous changes, so that the market has Get maximum profit. In this context, domestic new energy vehicles may require government departments and related companies to re-evaluate the market status, redefine new development strategies for new energy cars, and promote the healthy and continuous progress of all new energy vehicles. Based on the tripartite representatives in the oligopoly, namely domestic new energy vehicles, Tesla, and Conventional fuel automobile, a tripartite game model has been planned to discuss the tripartite pricing mechanism in this market competition. The research results found that in the future Chinese market, before the technology of domestic new energy vehicles has completely surpassed the technology of the joint venture industry represented by Tesla, it should try to keep the price as low as possible to obtain high profits.