Research On The Impact Of New Energy Subsidies On Financial Performance Of BYD

Automobile industry has played a pivotal role in our national economy.With the change of the world structure and the severe shortage of fuel energy,new energy vehicles have undoubtedly become the development trend of the global automobile industry.In the past,scholars in many countries have a lot of concerns and disputes about the future development of new energy vehicles due to the phenomenon that the government’s large amount of new energy subsidies are not proportional to the industry’s income.After the development of recent years,the new energy vehicles as the engine for the future development of the automobile industry has become the consensus view of all countries and governments around the world.Since the beginning of this year,restricted by uncertainties such as the supply of the industrial chain and the rising price of raw materials,the development of the global automobile industry has been weak,but new energy vehicles have maintained rapid growth.Advanced technologies such as electric drive,intelligent network connection and low-carbon travel have become an important force for the overall growth and transformation of the automobile industry chain and industry.By combing the research status at home and abroad and using literature analysis,case analysis and empirical research methods,this paper selects BYD Company,the most representative enterprise in the new energy industry,as the research object,and analyzes the impact of new energy subsidies on the company’s financial performance in view of the large range of changes in the enterprise’s financial performance indicators in recent years.Firstly,it introduces the development history and mode of BYD company,the general situation of the new energy subsidies enjoyed by the company in recent years and analyzes the current situation of BYD company’s financial performance.Secondly,the elimination method is adopted to study the effect of new energy subsidies on BYD’s financial performance,and the influence of new energy subsidies on four aspects of BYD’s financial performance is analyzed.Thirdly,through the collation of database data,the data samples of BYD Company from 2011 to the first half of 2022 are selected and measured for relevant financial indicators,and the impact test model is established.By using factor analysis and correlation analysis,the paper empirically studies the impact of new energy subsidy policies on financial performance in four aspects.The study found that new energy subsidies are crucial to the improvement of BYD’s financial performance.Finally,in view of the bottleneck problems,the paper puts forward the corresponding improvement countermeasures and suggestions from four aspects of BYD’s financial performance,including reasonable fight for new energy subsidy funds,enhance the core competitiveness of the enterprise,optimize the company’s capital structure,strengthen the relevant control and management system,so as to ensure that BYD’s long-term financial performance improvement can be achieved under the condition of the withdrawal of subsidies in the future.