Abstract: This paper reviews the key issues of new energy vehicle(NEV) in 2016,including subsidy fraud audit and amendment of incentive policies,and calculates the reduction amount in terms of import oil and the tailpipe emissions if replaced with NEV. The paper analyzes main influential factors and identifies major issues of current NEV adoption. In the future,the Chinese NEV industry will continue to develop rapidly under the long-term mechanism combined with both government regulation and marketization. But the growth rate of NEV adoption would lower than the 2014 and 2015 levels. The promulgation and implementation of a series of policies and national standards will have a profound impact on regulating the whole industry as well as the charging facilities. Fuel cell vehicles,smart car,and intelligent transportation are the important future direction.