Research On Influence Of Fiscal Subsidy Policy Adjustment On Operation Conditions Of BYD

Currently the new energy automobile industry is a strategic and emerging industry that has gained energetic support at home,which has offered opportunities for China to make a corner overtaking in the automobile industry and has become the development direction of automobile industry for its advantages in energy saving and environment protection.The new energy automobile industry is expanding and there is still a certain gap between new energy automobiles and fuel vehicles in technical capacity and product performance.Therefore,each country has unveiled a lot of industry supporting policies for the industry,which subsidize the industry in such aspects as R&D,production,marketing,construction of infrastructure and facilities by means of fiscal subsidies and tax preferences.However,subsidies are time-based and phased.With the reduction and exit of fiscal subsidies for domestic new energy automobile industry,it has exerted a significant influence on the operation and development of enterprises in the industry.How the enterprises should respond to the policy adjustment has become a key task for the industry’s sustainable development.This paper first studies the key supporting policies of new energy automobile industry at home and abroad,and by comparative analysis,gives suggestions on the adjustment of industrial policies.It then analyzes the current status of domestic new energy automobile industry and predicts its development trend.It then takes BYD as an object of research and analyzes the impacts of fiscal subsidy policy adjustment on the operation data of BYD.By applying the stock price evaluation method,the paper analyzes the fluctuation of stock price of BYD and the fluctuation of Shanghai Composite Index in the same period during the one-month window phase before and after the release of several key industrial policies,thereby confirming the influence of the release of industrial policies on BYD in stock market.Finally,the paper gives related suggestions on the measures for the “post-subsidy era”.After the research,it is found that at the level of operation,the policy adjustment has direct impacts on the decline of business revenue and profit growth speed of BYD,has big impacts on the decline of cash flow net amount generated by the company’s operational activities and also has significant impacts on relative value indicators such as price-earning ratio and Tobin’s Q ratio of the company;it has no direct impacts on the company’s R&D input,fund-raising capacity,operation efficiency and profiting capacity;at the level of stock market,the conclusion is that the release of “favorable” or “adverse” policies has no distinctive impacts on the stock price of BYD in the short term.The driving factor for the development of Chinese new energy auto industry has shifted from policy guide to technology promotion.Technical and marketing capacities will become the core elements for an enterprise to achieve a breakthrough in the industry.Targeting the operational status and development trend of the industry of BYD,the paper suggests measures such as improving the technology level and perfecting the technology path,stepping up M&D and cooperation at the upstream and downstream of the industrial chain,adjusting the current vertical integration mode,speeding up the export sales of batteries and automotive parts and components and making diversified uses of financial tools,so as to face the increasingly fierce market competition.