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Empirical Research on the Impact of Technological Innovation on New Energy Vehicle Sales

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  • Wanying Xie

    (School of Management Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Wei Zhao

    (School of Management Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Binbin Ding

    (School of Management Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

Abstract

In the context of global carbon peak and carbon neutrality goals, researching the driving forces and influencing factors behind the growth in sales of new energy vehicles (NEVs) is particularly urgent and crucial. Although the academic community has extensively explored various factors affecting NEV sales, technological innovation, as the core engine driving industry progress, is yet to receive sufficient and in-depth exploration regarding its potential profound impact on sales. Therefore, this study thoroughly analyzes the mechanism by which technological innovation influences sales, supplementing the existing literature, exploring sustainable industry development, and guiding the optimization of business strategies and precise government policies. This research employs the quality of NEV technology patents as a proxy variable for technological innovation, and conducts an empirical analysis using China’s NEV sales data from 2015 to 2022. The results of the study show the following: (1) the quality of technological innovation significantly contributes to the growth of new energy vehicle sales. This conclusion still holds when the administrative protection of intellectual property rights and the government’s public innovation environment indicators are used as instrumental variables of technological innovation quality. (2) Technological innovations in different links of the new energy vehicle industry chain have a positive impact on sales, especially those in the midstream battery, motor, and downstream charging services. This shows that in the critical period of new energy vehicle development, not only is the breakthrough of key technologies crucial, but also, non-critical technologies can promote sales growth by improving user experience and product performance. (3) Compared with plug-in hybrid electric vehicles (PHEVs), the overall technological innovation of new energy vehicles (NEVs) has a more significant effect on the sales of battery electric vehicles (BEVs). (4) In addition, the study finds that there is no significant difference between high-quality and low-quality technological innovations on the promotion of new energy vehicle sales, which indicates that the market values the overall effect of technological innovations more than the mere level of quality. The study of the impact of technological innovation on sales in different branches of the new energy industry chain can help to clarify the direction of technological innovation, optimize resource allocation, promote the synergistic development of the industry chain, enhance market competitiveness, and provide a scientific basis for policy formulation.

Suggested Citation

  • Wanying Xie & Wei Zhao & Binbin Ding, 2024. "Empirical Research on the Impact of Technological Innovation on New Energy Vehicle Sales," Sustainability, MDPI, vol. 16(20), pages 1-21, October.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:20:p:8794-:d:1496542
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    References listed on IDEAS

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