Research On The Impact Of Government Subsidies On The Financial Performance Of D New Energy Automobile Company

The rise of new energy vehicles is the development trend in recent years,the traditional cars use a large burden on the environment,and the fuel is traditional non-renewable energy,so it is necessary to develop new energy-powered vehicles.China has issued many policies and regulations to encourage the promotion of new energy vehicles,which has also attracted the attention of many traditional automobile companies to this field.The competitive market for new energy vehicles is gradually booming,with sales increasing year after year and a large potential for future development.Government support for new energy vehicles is not only reflected in consumer-oriented purchasing policies,but also in the allocation of large amounts of cash to new energy vehicle companies,providing the most direct and favorable support.Company D is a representative company in the Chinese market that has received government subsidies and has performed well since its entry into the new energy vehicle market,capturing a large portion of the market share due to the high amount of government subsidies received by Company D.Company D receives hundreds of millions of dollars in government subsidies each year,and the amount of these subsidies is very high.These subsidies have increased the company’s profitability and brought significant financial performance as the government’s policies on new energy vehicles have increased year by year.How should Company D continue to maintain its profitability,expand its share of the new energy vehicle market,and ensure a steady growth rate after the government subsidies are cut off? How should Company D continue to maintain its profitability,expand its share in the new energy vehicle market,and ensure a steady growth rate?This paper first analyzes the amount of government subsidies received in the domestic new energy vehicle market,and deduces that China has entered a period of subsidies withdrawal for new energy vehicles,and will soon face a situation where no subsidies are available and companies need to rely on their own strength to compete for market share.After specifically analyzing the government subsidies received by Company D over the years,the financial performance of Company D is studied by excluding the government subsidies included in the financial performance of Company D.Using the financial data of Company D for eight years,the financial performance of Company D is analyzed in terms of how it is affected by the government subsidies,and a comprehensive evaluation is made.The financial performance index system of Company D was established,and factor analysis was used to test whether the selected indexes were reasonable.Finally,multiple linear regression was used to obtain the evaluation results of whether government subsidies had an impact on Company D.Accordingly,optimization suggestions were made to improve the financial performance of Company D under the situation of reduced government subsidies.