In the context of the heterogeneous characteristics of consumers' demand and the government fixed subsidies, a two-stage car supply chain consisting of a single automobile manufacturer and a single retailer as the research object was discussed. A multi-party game competition model based on the non-cooperative game theory was established and solved by the backward induction. In the sensitivity analysis and comparative analy- sis, the changing rules of equilibrium solutions of production decision, economic benefits, environmental impacts and consumer surplus under the subsidy policy were explored. Then, the environmental impacts driving factors were captured by the simulation experiments. The results show that it is feasible for manufacturers to adopt elec- tric vehicles production under subsidies and achieve a win-win situation, where both economic benefits and con- sumer surplus improve. In addition, consumers' acceptance of electric vehicles plays a decisive role in improving social welfare and reducing environmental impact.