Optimal strategies of automakers with demand and credit price disruptions under the dual-credit policy

In this paper, a production and pricing decision model for automakers under the dual-credit policy is formulated. Then, with consideration of demand and credit price disruptions, a nonlinear programming model that maximizes automakers' profit and constrains the production of fuel vehicles (FVs) and new energy vehicles (NEVs) is investigated. Furthermore, four strategies that involve adjusting the production or price of FVs and NEVs are proposed, and four optimal solutions for each strategy are obtained. Finally, 16 scenarios are comprehensively analyzed, and a case study involving demand and credit price disruptions is conducted. The results show that the dual-credit policy has a positive impact on the development of NEVs, especially in early stages of NEV development. The FV credit coefficient has a significantly positive impact on the probability of automakers adopting adjustment strategies, while the NEV credit coefficient has almost no such impact. Moreover, automakers are inclined to adjust the prices of NEVs or the production of FVs to cope with demand and credit price disruptions. (c) 2021 China Science Publishing & Media Ltd. Publishing Services by Elsevier B.V. on behalf of KeAi Communications Co. Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).