Research On The Profitability Of BYD From The Perspective Of Government Subsidies

With the aggravation of energy shortage and environmental pollution,China gradually attaches importance to the promotion of new energy vehicles.The government has introduced various measures to strive for the steady and rapid development of the new energy vehicle industry.The implementation of the government subsidies policy has made breakthroughs in the development of the new energy vehicle industry and achieved the corner overtaking of Chinese cars.However,the implementation of the subsidies policy has also brought some negative problems,such as the lack of key core technologies while the production capacity of new energy vehicles is expanding,and the occurrence of malignant incidents such as "subsidies fraud".New energy vehicle consumption subsidies has entered the recede stage,which will affect the sales of new energy vehicles and further affect the profitability of enterprises.Therefore,it is particularly important to study its impact on profitability from the perspective of government subsidies.This thesis selects BYD as the research object,elaborates the current situation of government subsidies from two perspectives of size and type,and carries on the overall evaluation to the profitability.Based on the market failure theory,signal transmission theory and externality theory,the thesis selects the new energy vehicle industry as the research sample to analyze the impact mechanism of government subsidies on profitability and conduct an empirical test.Based on the data of BYD from 2011 to 2019,the correlation analysis between government subsidies and profitability of BYD is carried out.The results show that government subsidies are positively correlated with profitability;consumption subsidies will improve profitability,and R&D subsidies have a lag period to improve profitability.Comparing the results of the correlation between BYD government subsidies and profitability with the industry empirical results,it is found that government subsidies have a poor effect on BYD’s profitability promotion.The reasons are analyzed from the two aspects of government subsidies retreat policy and government subsidies application efficiency.Suggestions are put forward to improve the utilization efficiency of government subsidies,strengthen the synergistic effect of government subsidies and reduce the degree of dependence on government subsidies to improve the profitability of BYD.The thesis has 13 figures,19 tables,and 69 references.