Download pdf
The Influence of Consumption Subsidy Policy on China’s Domestic Electric Vehicle Market -- Take BYD as Example
- 1 Chengdu foreign languages school
* Author to whom correspondence should be addressed.
Abstract
China’s consumption subsidy policy is considered as a dominant factor in promoting the development of the domestic electric vehicle (EV) market, and companies like BYD have benefited from this policy. BYD, one of the leading EV manufacturers in China, has seen significant growth in EV sales since introducing the subsidy policy. This paper examines the influence that China’s EV subsidy policy brings to BYD, highlighting the pros and cons of the policy and the challenges and opportunities faced by EV manufacturers in China. Specifically, the policy has helped to make EVs more affordable and accessible to consumers, but it has also led to overcapacity and intense competition among manufacturers. The policy has also been criticized for being too heavily focused on subsidies and insufficient on other measures, such as infrastructure development, necessary for the EV market’s growth. By examining the subsidy policies and market performance of BYD, this paper highlights the effectiveness as well as drawbacks of the subsidy policy and the challenges and opportunities faced by EV manufacturers in China.
Keywords
electric vehicles (EVs), China, consumption subsidy policy, BYD
[1]. EV volumes.com, China NEV Sales for 2019 Q3, October, (2021), 2023/3/14 https://www.ev-volumes.com/country/china/.
[2]. Shenzhen stock exchange, BYD Monthly Production and Sales Report for December 2022, (2023/1/03), 2023/3/14 http://www.szse.cn/disclosure/listed/bulletinDetail/index.html?d5ca1309-9220-41ee-861a-fc49dbdfb174 .
[3]. Masiero, G., Ogasavara, M., Jussani, A., Risso, M.: Electric vehicles in China: BYD strategies and government subsidies. RAI Revista de Administração e Inovação (2016).
[4]. Sun, Y., Yue, J., Su. B.: Impact of government subsidy on the optimal R&D and advertising investment in the cooperative supply chain of new energy vehicles. Energy policy, (2022).
[5]. Jin, S.: An Analysis of the Influence of New Guidelines for Government Subsidies on China’s New Energy Automobile Industry--A Case Study of BYD. IOP Conference Series: Earth and Environmental Science (2019).
[6]. State information center, Where will China’s new energy vehicles go as subsidies decline?, (2018/3/28), 2023/3/14, http://www.sic.gov.cn/News/457/8915.htm .
[7]. BYD, BYD Co., Ltd. 2020 and 2019 Annual Report (Printed Version), (2021/3/29), 2023/3/14, https://www.bydglobal.com/sitesresources/common/tools/generic/web/viewer.html?file=%2Fsites%2FSatellite%2FBYD%20PDF%20Viewer%3Fblobcol%3Durldata%26blobheader%3Dapplication%252Fpdf%26blobkey%3Did%26blobtable%3DMungoBlobs%26blobwhere%3D1600575181734%26ssbinary%3Dtrue.
[8]. People.cn, 2023/3/14, What does a non-complete list of new energy vehicle subsidy cheating mean?, http://auto.people.com.cn/n1/2016/0911/c1005-28706880.html last accessed 2016/9/11
[9]. Sun, X.: The impact of government subsidies on innovation and performance of new energy vehicle industry (2021)
[10]. China association of automobile industry, 2023/3/14, Several car companies are suspected of cheating on new energy subsidies and investigation results will be announced, http://www.caam.org.cn/chn/9/cate_107/con_5191185.html.
Cite this article
Fu,Y. (2023). The Influence of Consumption Subsidy Policy on China’s Domestic Electric Vehicle Market -- Take BYD as Example. Advances in Economics, Management and Political Sciences,23,178-186.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).