Since the implementation of the No. 18 subsidy policy, there has been two extremes in the new energy vehicle market. First, the subsidy threshold is raised, and star products are immediately delisted. Second, new products are gradually supplemented and out of touch with market demand. The national industrial policy aims to encourage technological progress, indicate the direction of industrial development, and standardize industrial development. And the local government should relay the national subsidy in the promotion and application of new energy vehicles, formulate reasonable subsidy policies, promote their marketization, and truly realize the development goals of the new energy industry. To reform the local government subsidy policy, it is recommended to start from four aspects. First, use the promotion quantity to formulate the purchase subsidy standard to crack the subsidy. Second, subsidize the consumption process on a trial basis to prevent premature delisting of star products. Third, land subsidy unhook connections with manufacturing enterprises breaking the local protection. Fourth, use a variety of policy combinations including financial subsidies to accelerate the promotion and application of new energy vehicles.


