The Impact Of Government Subsidies On The Financial Performance Of New Energy Vehicle Companies

In recent years,my country has faced the two major pressures of increasingly serious air pollution problems and lack of international energy resources.Under the background of promoting carbon peaking and carbon neutrality,new energy vehicles with the advantages of energy saving and emission reduction,and replacing oil with electricity are in the government policy.Significant market achievements have been achieved under the support of China,which has promoted the green and low-carbon transformation of the transportation sector.In order to promote the rapid development of the new energy vehicle industry,the Chinese government has given a large number of financial subsidies to new energy vehicle enterprises.So what role do government subsidies play in the development of new energy vehicle enterprises,and how can new energy vehicle enterprises maintain their financial status after the subsidy declines? These issues are worthy of in-depth exploration and research.Therefore,it is of great significance to study the impact of government subsidies on financial performance for the development of new energy vehicles.Using the case analysis method,this paper firstly sorts out relevant domestic and foreign literature from the aspects of government subsidy motivation and financial performance impact.Analyzing the development situation of the case company Great Wall Motors from three perspectives of development strategy and operating conditions,introducing the industry background through the development history and current situation of new energy vehicles,and then analyzing the new energy vehicle industry and government subsidies of Great Wall Motors;finally,from the specific financial indicators To start with,use the comparative analysis method to analyze the specific impact of government subsidies on Great Wall Motor’s profitability,operating capacity,growth ability and debt risk before and after the subsidy amount is excluded,and analyze the impact of government subsidies on Great Wall Motor’s financial performance from the aspects of cash flow and R&D innovation.path.The study found that government subsidies have significantly improved the profitability of Great Wall Motors,the growth ability has been slightly improved,and the debt risk has been significantly reduced,but the operating capacity has not been improved;the impact of government subsidies on Great Wall Motor’s financial performance path is more abundant cash flow and less R&D and innovation vitality.excitation.Although government subsidies have generally improved Great Wall Motor’s current financial performance,there are some problems at the same time.First,Great Wall Motor is obviously dependent on government subsidies.Second,it has not given full play to the subsidy funds.Third,its own operating capabilities need to be strengthened.Therefore,finally,through a specific analysis and summary of the case inspiration,it can provide reference and reference for the sustainable and healthy development of new energy automobile enterprises.