Driving Factors of the Chinese Electric Vehicle Industry’s Development in XXI Century

This study provides an in-depth exploration of the core drivers driving China's electric vehicle (EV) industry in the 21st century, particularly the impact of subsidy policies, infrastructure, and pricing factors on the industry's progress. Through a detailed literature review, we systematically analyse these drivers, and at the same time, using regression analysis in conjunction with actual sales data from 2020 to 2023, we further corroborate the strong link between these elements and electric vehicle sales. According to our findings, the optimisation of subsidy policies and the improvement of charging infrastructure play a significant role in driving the expansion of China's EV market and the robust growth of the industry, while the influence of price factors is relatively limited. Based on these findings, we propose the following policy recommendations: first, the government should consider adjusting its subsidy policy from extensive subsidies to precise support for technological innovation and industry enhancement; second, it should increase investment in charging infrastructure, especially in rural and remote areas where charging facilities are relatively weak, in order to enhance the convenience of charging services and network coverage. These recommendations aim to provide scientific decision-making reference and support for the long-term and sound development of China's electric vehicle industry.