According to data from the China Association of Automobile Manufacturers, sales of new energy commercial vehicles fell by 71.6% year-on-year in the first four months of this year. In order to plug up the loophole of “cheat compensation,†the new regulations for the promotion and application of financial subsidies for new energy vehicles will be implemented starting from January 1, 2017. The market has responded to more stringent subsidy conditions. According to data from the China Association of Automobile Manufacturers, sales of new energy commercial vehicles fell by 71.6% year-on-year in the first four months of this year. Passenger car companies such as Yutong Bus, Zhongtong Bus, and Jinlong Automobile suffered serious declines in revenue and net profit in the first quarter. Among them, Zhongtong Bus's operating income decreased by 49.15% year-on-year, while Jinlong Motor's decline even reached 62.01%. At present, in 2016, more than 80,000 vehicles are eligible for subsidy, accounting for only 16% of new energy vehicle sales in 2016. The remaining part of new energy vehicles may not be eligible for subsidy until the second half of 2018. The new regulations also accelerate the polarization of the new energy automotive industry. With the continuous expansion of new energy bus sales, the capital requirements for production companies have increased. To solve the financial difficulties, large companies will develop new financing channels. BYD announced on the evening of May 16 that BYD Auto Industry Co., Ltd., a controlling subsidiary of the company, added capital of 500 million yuan to Tengshi New Energy to ease the adjustment pressure of the subsidy policy. An industry source pointed out that since the country's new energy subsidies are liquidated on an annual basis, it should be a shuffle period for the industry between 5 and 8 years. Now there are about 50 new energy bus companies, and keeping 8 to 10 companies after shuffling is very good. The performance of new energy bus companies in the first quarter, due to changes in the subsidy policy, has shown a slowing trend, which requires car companies to seek new growth points. In the long run, the new energy automobile market still has great potential.