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With the development of the economy and the enhancement of environmental awareness, new energy vehicles have become a new choice for many consumers. As one of the most developed countries in new energy vehicles, China cannot do without government financial support. In order to promote the development of China’s new energy vehicle industry, the government has introduced a series of support policies, including financial subsidies. This article conducts an empirical analysis of the development of new energy vehicles in China from the perspective of the impact of institutional economics on public policy. It is concluded that this article uses a time series model to analyze the relationship between the amount of state subsidies and sales, the number of patent applications, and the number of charging piles from 2011 to 2021. The research results show that state subsidies have a significant impact on the number of new energy vehicle patent applications. Positive promotion effect. The impact of state subsidies on sales is not significant.