Production Forecast of China’s New Energy Passenger Vehicles in 2021–2023 under the Compliance of Dual-Credit Policy

Abstract

The corporate average fuel consumption (CAFC) and new energy vehicle (NEV) credit policy (2021–2023) was officially released in June 2020. As a mandatory regulation for automobile manufacturers to produce new energy vehicles, its impact on the output of new energy vehicles needs to be systematically evaluated. In this study, we build an enterprise policy compliance model to simulate the dual-credit policy requirements for the production of new energy vehicles from 2021 to 2023 under different scenarios. The results show that the production of new energy vehicles from 2021 to 2023 is required to reach 1.78 to 3.97 million under different scenarios. Three factors, i.e., switching from New Europe Driving Cycle (NEDC) to World Light Vehicle Test Procedure (WLTP) fuel consumption improvement of conventional vehicles, and credit per new energy vehicle, have a more significant impact on the new energy vehicle production than others. Under the minimum guarantee scenario, a 10% change in the above three factors will lead to a 2.5%, 1.5%, and 0.5% reduction in the production requirement for new energy vehicles.