Using Oil and Lithium Carbonate to Predict New Energy Vehicle Sales in China by Linear Regression Analysis

Abstract

Recently, a heated discussion has been centered on new energy vehicles, with derivative topics such as the violent rise and new height of oil price and also lithium price, the technical development, and sales volume of Lithium batteries, the rising price of new energy vehicles, and so on. As the new energy vehicle has been expected as one of the most important measures to protect the environment and save traditional fuel energy, it is crucial to accurately understand and explain how the price and import volume of oil and Lithium carbonate impact the sales of new energy vehicle in China and the relationships between each factor, based on linear regression analysis. In this paper, the output of Lithium batteries represents the sales of new energy vehicles in China. The result reveals that the price and import volume of oil and Lithium carbonate all have significant linear relationships with the output of Lithium batteries in China, while the most influential factor is Lithium carbonate price and the weakest factor is Oil import volume. Moreover, these factors interact with each other obviously when they affect the output of Lithium batteries together. The above results of the research provide a theoretical reference for relevant policies to slightly adjust the price of oil and lithium, for companies to modify sales strategies and for consumers to take action to accommodate the general trend of prosperous development of the new energy vehicle industry.