Study on Financial Risk Analysis and Prevention of BYD's New Energy Vehicle Business

Abstract

In recent years, China’s automobile industry has encountered a growth bottleneck and is in urgent need of transformation. New energy vehicles (NEVs) have become a key direction: they help lower oil dependence, ensure national energy security, and enable domestic firms to achieve competitive breakthroughs, as the technological gap with foreign companies is narrower than in traditional fuel vehicles. Supported by national policies, the NEV industry also advances environmental protection and improves global competitiveness. However, NEV projects feature large investment, long cycles, and uncertain returns, creating heavy financial pressure on enterprises. Thus, NEV companies must trengthen financial risk identification and control to enhance resilience and sustainable development. As a leading domestic NEV manufacturer, BYD demonstrates high technological maturity and strong representativeness. This study assesses BYD’s financial risks through financial ratio analysis, trend analysis, and case comparisons. It aims to improve BYD’s risk prevention awareness, reduce potential losses, and provide a reference risk assessment framework for peer enterprises to avoid bankruptcy risks.