The Impact Of Government Subsidies On The Financial And Innovation Performance Of New Energy Vehicle Enterprises

With the accelerated urbanisation process and the surge in the number of motor vehicles,the urban transport sector has become one of the major sources of carbon emissions.The increasing carbon emissions from transport not only seriously affect the air quality and ecological safety of cities,but also seriously affect the sustainable development of China’s cities.In order to promote high-quality economic development and ecological civilisation simultaneously,China has proposed a "carbon peak,carbon neutral" target in 2020,and the new energy vehicle industry is about to become a blue ocean field.However,as an emerging industry,the new energy vehicle industry has a series of problems such as insufficient R&D experience,expensive R&D amount,long R&D cycle and low national demand.In the past decade,the state has increased its support for new energy vehicle enterprises through policy guidance and financial support.As a result,the threshold of government subsidies has been increasing and the amount of subsidies has continued to decline significantly in recent years,which will eventually exit the market stage and make the market competition more intense.Therefore,in order to enhance the effectiveness of government subsidies during the transition period and to provide development direction for enterprises after their complete withdrawal,it is very practical to study the financial performance and innovation performance of government subsidies for new energy vehicle enterprises.This paper uses a combination of theoretical research and case studies,and selects BYD,a leading company in the new energy vehicle industry,as the case study company.The background and significance of the study,the current status of domestic and international research,the research methodology and content,innovations and shortcomings,relevant concepts and theoretical foundations are first briefly introduced.Then,a brief introduction to the new energy vehicle industry and the case company is given,followed by the selection of two specific performance indicators,i.e.from two aspects: financial performance and innovation performance.In terms of financial performance,the impact of R&D-related government subsidies and promotional subsidies on BYD’s financial performance was analysed through four financial indicators,namely profitability,operating,solvency and development capability.In terms of innovation performance,the appropriate innovation input and output indicators of BYD were selected to construct a DEA model with relevant data from2016 to 2021 to evaluate and analyse the impact of BYD’s government subsidies on innovation performance at an aggregate level,Further in-depth research and analysis will be conducted on the indicators of input and output.The final conclusions are twofold.First,the impact of government subsidies for energy vehicles on BYD’s financial indicators varies,and each has its own advantages and disadvantages.The second is that government subsidies for new energy vehicles have a positive impact on BYD’s innovation performance.Lastly,appropriate recommendations are made to government and industry to address the problems identified in the above study and analysis.