Research on the Impact of Government Subsidies on the Development Abilities of EV Enterprises--Taking NIO as an Example

Abstract

Facilitating the development of EV is a way to alleviate the pressure on energy and environment in our country,it is also the necessary requirement to promote the economic growth of our country, the government subsidies play an important part in the process of promoting the development of EV. This article takes the EV enterprise NIO as an example, through the analysis of the financial performance, innovation ability and market competitiveness of NIO, combined with the change of China's subsidy policy, to explore the impact of China's government subsidies on the development ability of new EV enterprises. The research finds that government subsidies have a relatively large positive impact on the development ability of EV enterprises, mainly through promoting the development of automobile enterprises in terms of profitability and growth ability. At the same time, it brings potential negative effects, such as excessive reliance on government subsidies by automobile enterprises. The conclusion of this study has certain practical significance in the context of the decline of new energy subsidies, and provides certain help for car companies to make better use of subsidies and avoid or reduce the negative effects.