The consumption of new energy vehicles in China is experiencing a historic transition from being driven by policy to being market-driven. Since 2020, government subsidies for such vehicles have been decreasing gradually. With new energy vehicles increasingly accepted by Chinese consumers, the new energy vehicle market in China has experienced robust growth in the past three years. The market has entered a virtuous cycle and has the capacity for independent development. Against the background of the virtuous cycle, the country's new energy vehicle industry has been in a new development stage that features high-quality development with innovation a top priority. The elimination of the subsidy, scheduled to start next year, will help foster even more outstanding domestic auto brands.