A Study on The Impact of New Energy Vehicle Subsidy Policies on BYD Company's Financial Performance

Abstract

In recent years, the domestic economy has grown rapidly, people's living standards have been significantly improved, and cars have become a necessary means of travel for almost every family. However, with the sharp increase in automobile consumption, the harm to the environment is becoming more and more significant, and the green of the global ecological environment continues to pose a great threat, so the new energy vehicle product was born, catering to the theme of green and environmental protection, and has received widespread attention from consumers at home and abroad, and China has also put forward a number of subsidy policies since 2009 to encourage the development of the new energy vehicle industry, as an important breakthrough in China's industrial transformation and upgrading. Therefore, according to field research, the impact of new energy vehicle subsidy policies on the financial performance of car companies is of great significance. This paper attempts to explain the impact of the new energy vehicle subsidy policy on the financial performance of new energy vehicle enterprises over the years, and takes BYD, a leader in today's new energy vehicle companies, as the research object, and analyzes the impact of the subsidy policy from 2016 to 2023 on the financial performance of BYD Group in the same period.