新能源汽车分析new energy cars analysis - 图文

Summary

The main point of this report is to illustrate the reasons why New Energy Vehicles will influence Gasoline Vehicles in the future.

The beginning of this report covers the background of the New Energy Vehicles, including both advantages and disadvantages.

Following the background is the analysis of the relationship between New Energy Vehicles and Gasoline Vehicles and how New Energy Vehicles influence Gasoline Vehicles, plus the macroeconomics and micro economics effects. Policies from Chinese government and national plan about New Energy Vehicles are also introduced in this part.

In the end, suggestions are given to the citizens, firms and government respectively, in order to achieve sustainable development.

Table of Contents

Introduction .................................................................................................................... 1

1.1 1.2 1.3

Background of New Energy Vehicles .......................................................... 1 Advantages of EVs........................................................................................... 1 Disadvantages of EVs ..................................................................................... 2

Body ..................................................................................................................................... 2

2.1 2.2 2.3 2.4

National plan about New Energy Vehicles ................................................. 2 Policies for New Energy Vehicles from governments ............................ 2 Why could New Energy Vehicles influence Gasoline Vehicles ............ 3 Macro and micro economics effects ........................................................... 5

Conclusion ...................................................................................................................... 6

3.1

Suggestions ....................................................................................................... 6

Appendix ......................................................................................................................... 7 References ...................................................................................................................... 9

Introduction

1.1 Background of New Energy Vehicles

Automobiles are popularly demanded as vehicle tool nowadays. China had accelerated the automobile industry since 1980. During the thirty years, China raised the amount of vehicle production from 100,000 to 10,000,000 each year. Because of its convenient and comfortable, buying a domestic automobile is very hot. Along with the development of automobile industry, varied cars are produced for different consumers but customer buying criteria never change. People will consider of the consumption of gasoline of the car and the price of it. So lower price and whether save petrol become the principles when buying a car.

As a result, New Energy Vehicles are developed in 2004, not only for driving cheaper, but also decreasing greenhouse effect. Usually we call hybrid vehicles and electric vehicles (EVs) as new energy vehicles; China is more likely to do something in electric vehicles in the coming decades. 1.2 Advantages of EVs

Electric vehicles (we call them “EVs” in this report) are propelled by an electric motor powered by rechargeable battery packs. Electric motors have several advantages over internal combustion engines (ICEs) Such as

? Energy efficient ? Environmentally friendly ? Performance benefits ? Reduce energy dependence ? Recharge time

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1.3 Disadvantages of EVs

EVs are not perfect vehicles, they still have some bottleneck to breakthrough :

? Hard to breakthrough the core technology ? Prices of EVs are universally high.

? The battery has to be charged regularly. It takes about 6-8 hours to

recharge completely.

? Limits on driving distance. The normal working range of battery is about

80-130 miles. ? Lack of power

Body

2.1 National plan about New Energy Vehicles

Ministry of Industry and Information Technology (MIIT) announced recently that China will input over 100 million to support the production of New Energy Vehicles in the coming 10 years. By that time China will be the largest New Energy Vehicles producing country in the world.

2.2 Policies for New Energy Vehicles from governments

As EVs have several problems to be promoted, the Chinese’s government should unveil new policies especially for the high cost in order to enhance purchasing power from citizens. So from the beginning of 2009 till today, Chinese government and some regional government came up with a set of new policies for EVs one after another.

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In December 9th 2009, Shanghai, Chongqing, Wuhan, Shenzhen and Beijing are chosen as the experimental cities which can sale new energy vehicles for personal use. The governments of Chongqing and Shenzhen have release a policy of subsidy, buyers can get a subsidy of buying EVs. The maximum of subsidy of buying new energy vehicles raise to 60,000 yuan by Shenzhen government.

2.3 Why could New Energy Vehicles influence Gasoline Vehicles

Because of the limited technology and high cost, the price of an EVs still in a high place. If the governments don’t give any subsidies, the market situation won’t be good. However, many regional governments have given pretty good subsidies for buying EVs, so how will the lower price affect the sales volume of EVs, what will change in EVs’ demand curve?

Demand curve means the graphical representation of the demand schedule. It shows how much of a good or service consumers want to buy at any given price. It shows how much of a good or service consumers want to buy at any given price. It shows the negative relationship between the quantity demanded and the price, when all other influences on consumers’ planned purchases remain the same. It slopes down from left to right and is an inverse relationship between price and quantity demanded.

According to the definition of Demand Curve, we conclude that, ? If the price of EVs decrease = the demand of EVs will increase ? If the price of EVs increase = the demand of EVs will decrease

The line chart below shows the fact that when governments give subsidies, it causes a movement along the demand curve from B to A.

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