Research On Financing Methods Of New Energy Vehicle Enterprises In The Context Of Subsidy Withdrawal

The development of new energy vehicles is a strategic measure to promote green development and implement new development concepts.Since 2009,China has achieved remarkable results in encouraging the development of the new energy vehicle industry through government subsidies,and Chinese new energy vehicle industry has entered a new stage of development of large-scale and high quality.To further promote the transformation of the new energy vehicle industry into a market-oriented one and enhance the competitiveness of the industry,since 2016,the government has started to implement the subsidy retreat.In the critical period of upward breakthrough for the new energy vehicle industry’s innovation ability improvement,product quality improvement and brand building,facing the withdrawal of government subsidies,it is important for new energy vehicle enterprises to scientifically and rationally choose financing modes and obtain necessary financial support.This paper takes BYD and JHQC as the object,and conducts a comparative study on their financing modes under the background of subsidy withdrawal.On the basis of sorting out and summarizing relevant domestic and foreign research,related theories and Chinese new energy vehicle subsidy policy,using the theory of Signaling Theory,Market Timing Theory and Financial Contingency Theory to conduct a comparative analysis of the financing modes of the case companies before and after the withdrawal of government subsidies in terms of endogenous financing,exogenous financing and financing structure.The EVA-SGR matrix was also used to evaluate and analyze the rationality and economic consequences of the financing modes of the case companies after the withdrawal of government subsidies.The study results show that:the withdrawal of government subsidies will prompt the new energy vehicle enterprises to increase debt financing,issue additional shares at the right time,and change the financing structure;in the face of the withdrawal of subsidies,there are differences in the degree of dependence of new energy vehicle companies on government subsidies,with BYD relying less on government subsidies and JHQC relying heavily on government subsidies;in the face of the subsidy withdrawal,new energy vehicle compapiac have different financing modes and effects,with BYD has a preference for debt financing and a tendency to over-finance,while JHQC has a preference for commercial credit liabilities.Insights from the study:the government should fully consider the marketization process of the industry and scientifically adjust the subsidy policy;in the phase of subsidy withdrawal,enterprises should reduce their dependence on government subsidies and improve their selfgenerating capacity,but follow the policy guidance;accurately judge the current situation of enterprises and choose diversified financing modes that suit their development to improve capital utilization.