In order to promote the high-quality and sustainable development of the alternative fuel vehicle industry, the Chinese government has given strong tax policy support. In China, the corporate income tax rate is uniformly 25 %, and the government gives tax incentives to high-tech enterprises that meet the relevant appraisal standards: the tax rate is reduced by 15 %. The purpose of this work is to analyze the impact of China’s tax policy on the production of vehicles using alternative fuels and to assess the significance of tax incentives for the formation of significant incentives for the development of this production. The hypothesis of the study is to confirm the need to provide incentives for high-tech production of vehicles using alternative fuel to maintain a positive financial result of such production. This paper uses the OLS analysis model. Deriving data from the annual financial reports of BYD, Geely, SAIC Motor and Great Wall Motor from 2011 to 2020, analysis is carried out of the impact of income tax rate and debt ratio on net profit margin. Research has confirmed that income tax is positively correlated with net profit margin, and the debt ratio is negatively correlated with the corporate net profit margin. The higher the debt ratio, the less conducive to the improvement of the company’s net profit margin. Corporate net profit margins are more sensitive to changes in income tax. This also provides an effective way to improve the tax policy to promote the development of new energy vehicles. Tax policy is the most effective tool for the government to carry out macro-control, helping to avoid the harm caused by “market failure” and guiding the development direction of the production of vehicles using alternative fuels.