Research On The Impact Of Financial Subsidies And Tax Incentives On The Growth Of New Energy Vehicle Enterprises

In recent years,the rapid growth of the global economy has heightened people’s awareness of environmental protection and sustainable development,thereby underscoring the escalating significance of low-carbon and environmentally friendly new energy vehicles in addressing energy scarcity and curtailing carbon dioxide emissions.Against the backdrop of China’s ongoing economic transformation and upgrading,new energy vehicles have emerged as pivotal instruments for optimizing the economic structure and catalyzing developmental shifts.Nonetheless,the nascent stage of China’s new energy vehicle industry engenders a multitude of practical challenges,including technological research and development gaps,delayed initiation of independent research and development,and inadequate supporting infrastructure.To solve these problems,the relevant central ministries and local governments have introduced a large number of financial and taxation support policies in terms of acquisition subsidies,tax relief,R&D support,consumer preferences,infrastructure and standard specifications.These subsidies and tax incentives have,to some extent,promoted the explosive growth of China’s new energy vehicle industry.However,as the development of new energy vehicles gradually shifts from subsidy-oriented to market-oriented,China needs to adjust and optimize the fiscal subsidies and tax incentives to effectively play the role of market orientation in response to the current needs of new energy vehicle enterprises.Hence,this study will comprehensively analyze the impact of financial subsidies and tax incentives on the growth of new energy vehicle enterprises by means of rigorous case studies.Furthermore,based on the research findings,this paper will propose suggestions that foster the growth of new energy vehicle enterprises,thereby facilitating the sustainable development of the new energy vehicle industry.Regarding the theoretical analysis,this study begins by thoroughly reviewing pertinent literature to establish an evaluation system for the growth of new energy vehicle enterprises.This evaluation system encompasses three crucial dimensions:financial performance,sustainable operation,and technological innovation.Moreover,this paper provides explicit definitions of relevant concepts and expounds on the effects of financial subsidies and tax preferences on the growth of new energy vehicle enterprises,drawing on relevant theories.Furthermore,a comprehensive analysis of the present state of China’s new energy vehicle industry is conducted,systematically categorizing the financial subsidies and tax incentives that Chinese new energy vehicle enterprises have benefited from in recent years.Subsequently,BYD was selected as the case company,and the following three main conclusions were drawn by specifically analyzing the impact of financial subsidies and tax incentives on the indicators of the three dimensions of financial performance,sustainable operation and technological innovation in the growth of enterprises,and by comprehensively analyzing the correlation between financial subsidies,tax incentives and the growth of enterprises through factor analysis: i.Financial subsidies have a short-term positive impact on the financial performance and First,financial subsidies have a short-term positive effect on the financial performance and sustainable operation of new energy vehicle enterprises,but do not essentially improve the business situation in the long run;second,tax incentives have an improving effect on financial performance,but have an inverse inhibiting effect on sustainable operation;Thirdly,it becomes evident that financial subsidies and tax incentives have a more pronounced impact on the inputs and outputs of innovation within new energy vehicle enterprises,with tax incentives playing a notably significant role.Consequently,this paper puts forward fiscal and tax policy recommendations for new energy vehicle enterprises,encompassing the following aspects.Primarily,the government should recalibrate the direction of subsidy policies in the new energy vehicle industry.Additionally,the tax preference system of the new energy vehicle industry should be enhanced through comprehensive and targeted approaches.Furthermore,the government ought to optimize fiscal policy supervision measures.Lastly,enterprises are encouraged to judiciously apply for and prudently utilize fiscal preferential policies.