Research on the Future Development Trends of New Energy Vehicles in China

Abstract

With China's economy expanding quickly, the extreme increase in demand for automobiles, and the rapid rise of the automobile industry, one of the world's biggest marketplaces for automobiles is now China. However, because the energy used in traditional cars is petroleum-based traditional energy, environmental pollution problems such as the greenhouse effect and global warming have also emerged. In order to protect the "Lucid waters and lush mountains", a sustainable development strategy is proposed by the country. New energy vehicles can lessen China's reliance on conventional energy sources that are dependent on petroleum under this plan. This paper analyzes the future development trend of new energy vehicles in China and its reasons from the perspective of risk management. At the national level, the price risk, country risk, and risk cost of oil are analyzed, and it is concluded that the country will introduce more relevant policies to encourage the creation of new energy vehicles. At the enterprise level, the study of price risk and enterprise income risk clarifies the reasons for enterprises to invest in the manufacture and sales of new energy vehicles. At the individual level, the analysis of environmental risk, income risk, and loss control cost reveals the reasons individuals buy new energy vehicles. The analysis of the above three levels leads to the conclusion that China's energy vehicles are able to develop rapidly in the future.