Electric　vehicles　(EVs)　are　considered　a　promising　solution　for　reducing　emissions　in　urban　transportation　and　addressing　energy　crises.　Several　countries,　including　China,　have　implemented　direct　financial　subsidies　to　encourage　the　adoption　of　EVs.　However,　there　is　a　lack　of　comprehensive　evaluation　regarding　the　effectiveness　of　these　subsidies　and　their　interaction　with　non-financial　incentive　policies.　Additionally,　the　design　of　subsidy　policies　can　be　endogenous,　potentially　leading　to　biased　estimations　of　their　effects　on　EV　penetration.　To　address　these　issues,　this　study　utilizes　a　“quasi-natural　experiment＂　approach,　taking　advantage　of　the　gradual　reduction　of　nationwide　EV　subsidies　by　the　Chinese　government　due　to　financial　constraints,　rather　than　market　conditions,　thus　mitigating　the　endogeneity　problem.　The　study　collects　panel　data　from　224　prefecture-level　cities　in　China　and　employs　a　modified　panel　data　fixed　effects　model　to　quantify　the　impact　of　financial　subsidies　on　EV　sales　and　market　shares.　The　analysis　focuses　on　subsidy　variations　during　six　periods.　The　main　empirical　findings　are　as　follows:　(1)　1　%　increase　in　purchase　subsidies　leads　to　a　1.36　%　increase　in　EV　sales　and　a　2.31　%　increase　in　EV　market　share.　(2)　Non-financial　policies,　such　as　parking　benefits,　promotional　goals,　and　restrictions　on　the　number　of　vehicles,　also　contribute　to　boosting　EV　sales.　(3)　The　effects　of　purchase　subsidies　vary　across　cities　with　different　socio-economic　conditions.　(4)　Some　non-financial　policies　are　found　to　enhance　the　positive　effects　of　subsidy　policies.　©　2023