Abstract: The production and trading modes of automobile manufacturers have been changed by the “double credits” policy, which is followed by a new context about automobile pricing and emission reduction issues. The seller is composed of two different manufacturers (M1 produces both oil-fueled automotive(OFA)and new energy vehicles (NEVs), while M2 produces only NEVs). By taking consumers’ low-carbon preference into consideration, the market needs and OFA’s fuel consumption are negatively correlated, and consumers have a lower price elasticity of demand for low-carbon products, thus, the market demand is affected by the dual effects of consumers’ low-carbon preference and automobile’s price. The methodology of mathematical modelling is equipped under two scenarios of that M1 adopts emission reduction strategies or not, the pricing strategies and emission-reduction decisions of automobile manufacturers under the policy of “double credits” are explored, as well as the effects of NEV credit value of each NEV and the ratio requirements of NEV credit on the decision-making of government and enterprises are discussed. Furthermore, the changes of the pricing and emission reduction decisions made by the “double credits” policy, consumers’ low-carbon preference and the energy-saving and emission reduction measures adopted by manufacturers, are tested by using the methodology of example analysis under different scenarios.

Key words: the “double credits” policy; low-carbon preference; competitive pricing; emission reduction strategies; automobile manufacturers