The Impact Of Government Subsidies On The Performance Of Automobile Manufacturers

Government subsidy refers to the government’s support for the development of enterprises by transferring funds to related enterprises and providing tax incentives in order to achieve specific economic goals.Since the "Outline of the National Industrial Policy of the1990s" issued in 1994 established automobile manufacturing as a pillar industry of the national economy,China has introduced a series of industrial subsidy policies to ensure its rapid development.With the global emphasis on environmental issues,since 2001,the Chinese government has successively introduced subsidy policies on new energy vehicles,is committed to accelerating the industrialization process,and popularizing new energy vehicles on a large scale.However,the rapid development of the automobile industry has also brought a lot of problems.Since the appearance of the "scam" in 2016,the state has gradually reduced the subsidy intensity.In this context,this paper selects the financial data of listed companies in China’s automobile manufacturing industry from 2013 to 2017 as a research sample,and analyzes whether government subsidies have promoted the development of the industry from the perspective of financial performance and innovation performance.Based on the research on the impact of government subsidies on the performance of automobile companies,Zhongtong Bus,a new energy bus company,is selected as a case study object to study how government subsidies have impacted specific enterprises and the impact of the current decline in new energy vehicle subsidies on enterprises and influence level.The research method combining industry research and case analysis is used to explore the impact of subsidy decline on the current development of the automotive industry.First,through industry research,empirical results show that government subsidies have a significant incentive effect on the financial performance of automobile manufacturing enterprises;but they have not played a positive role in promoting corporate innovation performance.Secondly,through case analysis of Zhongtong Bus Company,it was concluded that in terms of financial performance,most of the subsidies that Zhongtong Bus received each year filled the current cash flow and improved the current profit level.In terms of innovation performance,it was compared with other companies in the same industry.The comparison of enterprises found that the level of innovation input and innovation output capacity of Zhongtong Bus was relatively average,which was not consistent with the government subsidy level.Based on the analysis results,this article believes that the government’s support policy for auto companies,especially new energy auto companies,has deviated from its original intention to a certain extent.Therefore,in order to improve the effect of government subsidy policies,relevant suggestions are proposed to realize the sustainable development of automobile enterprises in the era of post-subsidy.First of all,for the automotive industry,the government should not be one size fits all for subsidies.The subsidy decline should be achieved gradually by strengthening the supervision of the use of subsidies by enterprises and improving external policy support and guidance.Secondly,for Zhongtong Bus case enterprises,enterprises should strengthen the disclosure of subsidies;make reasonable use of government subsidies to increase the emphasis on research and development,improve the level of technological innovation to achieve the long-term development of enterprises,and the response strategies of government subsidies to decline shall be well prepared.