Evolutionary game analysis on incremental component suppliers and auto manufacturers' intelligent connected vehicle production decisions

Abstract This paper considers a two‐population evolutionary game between incremental component suppliers and new energy vehicle (NEV) manufacturers to explore their intelligent connected vehicle (ICV) production decisions in the long term. The government subsidy policy is taken into consideration in the extended model. Through analysis, we derive all the possible evolutionary results and obtain while the static subsidy affects the thresholds compared with non‐government subsidy situation, it has no effect on the overall evolutionary direction. However, the dynamic subsidy can remove the periodic behavior of the ICV supply chain participants. This paper provides some suggestions to enhance the ICV industry development.