Research On Profit Model Of New Energy Automobile Company BYD

With the development of national economy,the construction of ecological civilization has become an important part of the overall layout of “Five in one”.New Energy Automobile,which is a new industry of traditional automobile industry,has effectively improved the harmful substance and polluted air in the tail gas of traditional fuel automobile.By the end of 2020,China’s production and sales of new energy vehicles ranked first in the world,reaching a record high of 1.367 million units.However,the overheated market has led to the continuous tightening of the state subsidy policy,and consumers have further high requirements for the quality and safety of new energy vehicles.At the same time,there are ideal,Xiaopeng and Weilai cars going to the US market,Tesla,who built a mega-factory in Shanghai and delivered it quickly,and the “Survivors”of the domestic market for new-energy vehicles entered a cold winter.So how to form a set of unique profit model under the background of the gradual reduction of state subsidy and the fierce competition of new energy automobile consumption market becomes a problem worth thinking about.whether it can catch the consumer demand to maintain the steady growth of sales volume;Is it possible to use the integrated industrial chain as a profit lever to move the whole new energy automobile industry? Is it possible to bring a strong and indestructible profit barrier with the help of the incomparable core competitiveness of enterprises? The answers to these questions are crucial to whether Jády can continue to lead the pack.Therefore,the research will not only enable investors to better understand the operation of the profit model,it could also serve as a model for other carmakers by pointing to the problems with Jády’s own profit model.First of all,this paper reviews the literature related to profit model.At present,there are few literatures on the application of profit model to new energy vehicles based on existing theories,which is also the innovation of this paper.Secondly,this paper analyzes the factors of profit model from the aspects of BYD’s new energy vehicle industry chain and research and development capacity.At the same time,Tesla and SAIC are selected as the object of comparison for comparative analysis of financial and non-financial aspects.Through the analysis,it is found that byd’s profit model has certain problems: the profit point is relatively single,which is greatly affected by market policies;Profit source is unstable,diversification makes business development uneven;The profit lever is not perfect,the upstream and downstream industry chain is relatively closed,and the upstream cost competition is fierce;Profit barrier investment is large,the cycle is long,the effect is unknown.In view of the above problems,the paper concludes the internal and external causes of the problems,and suggests that BYD should strengthen the investment of profit barrier,increase R ＆ D efforts and enhance innovation ability,highlight the main core business,improve the upstream and downstream industrial chain,effective cost control and the building of brand culture.