The CAFE-NEV Mandate For BYD Auto Research On The Impact Of Financial Performance

The country’s carbon emissions are increasing with economic growth,and the control over carbon emissions is also strengthening.As one of the key industries with high carbon emissions,the automobile industry has become the key to the development of the country’s automobile industry at present,how to reduce carbon emissions while making the automobile industry develop sustainably.The country’s new energy vehicle industry has benefited from the rapid development of the national subsidy policy in the early stage,and has gradually won the recognition of the majority of consumers.However,long-term financial subsidies will put a lot of pressure on the government.The introduction of the "CAFE-NEV" policy is to replace the gradual decline of state subsidies for new energy,reduce the adverse impact of the decline of subsidies on auto companies,and promote the development of auto companies.With the gradual improvement and maturity of the "CAFE-NEV" policy,its impact on the long-term development of the auto industry has deepened.How auto companies respond to the policy and improve their own financial performance requires great attention from companies and it is also worthy of research by scholars.On the basis of relevant theories and previous studies,this paper firstly introduces the development of the passenger car industry under the background of the "CAFE-NEV" policy,including production and sales,CAFE-NEV points and R&D investment.After reaching the peak in 2017,it began to decline,but the annual growth rate of new energy vehicle sales is obvious,and consumers’ acceptance of it has enhanced;the current NEV points are in a state of short supply,resulting in a continuous increase in the price of points;the overall industry R&D investment is relatively stable.Then,taking BYD Auto as the analysis object,it introduces its development under the integral policy.On this basis,the financial performance of BYD is discussed from the vertical and horizontal dimensions.In the longitudinal analysis,the entropy method is used to objectively weight BYD’s financial indicators for 2016-2021,and it is found that BYD’s financial comprehensive score fluctuates significantly in 2016-2021;Starting from the ability,a comparative analysis with Chang An Automobile in the same industry found that the operating profit margin and return on equity before and after excluding the market value of NEV points fluctuated significantly,especially in 2021,which is mainly related to the average transaction price of NEV points in that year;In recent years,BYD’s profitability has rebounded but is unstable,and there may be problems such as dependence on new energy state subsidies and poor cost control;stable R&D investment and strong future development capabilities;due to asset utilization efficiency and low accounts receivable turnover As a result,the total asset turnover ratio is relatively low;the quick ratio and assetliability ratio are higher than the industry average and Chang An Automobile,and the overall solvency has been enhanced,but there are still certain financial risks.Finally,based on the analysis results,it puts forward targeted financial performance improvement suggestions.Although there are few literatures on the "CAFE-NEV" policy at present,considering its guiding role in the development direction of the country’s auto industry,attention should be paid to its impact on the development direction and financial performance of enterprises.Combining it with corporate financial performance will help companies improve their financial performance under the new policy environment.