A “timely rain” during the epidemic: BYD received 1.342 billion yuan in new energy subsidies in 2017

On March 2, BYD announced that according to the Shenzhen Pingshan District Development and Reform Bureau's "Notice on the Release of Central Financial Clearing Funds for the Promotion and Application of New Energy Vehicles in 2017", BYD Automobile Industry Co., Ltd. has recently Received central financial subsidy funds for the promotion and application of new energy vehicles in 2017 transferred from the Shenzhen Pingshan District Finance Bureau, totaling RMB 1.342 billion.

BYD also stated that the national new energy vehicle promotion subsidies received will increase the company's cash flow level, help speed up the company's accounts receivable turnover, and reduce financial expenses and the company's asset-liability ratio.

Data show that in January 2020, BYD’s new energy vehicle sales were only 7,133 units, a year-on-year decrease of 75.12%, and the cumulative sales of all models were 25,173 units, a year-on-year decrease of 42.68%. As the epidemic intensifies, the sales decline in February will be even greater. Indeed, since subsidies were withdrawn in June 2019, the sales of new energy vehicles have halved month by month. It must be that new energy vehicle companies are not having an easy time, and they are in urgent need of subsidies to restore blood.

In October last year, the Ministry of Industry and Information Technology issued the "Announcement on the Clearing and Review of Subsidy Funds for the Promotion and Application of New Energy Vehicles in 2017", which showed that BYD became the car company with the highest subsidy in the passenger car category, as high as 31.59 100 million. Among other passenger car brands that have received subsidies, the total subsidy amount of the second to seventh-ranked car companies is not as much as that of BYD. At the same time, Cheyou Toutiao reviewed relevant information and found that from 2016 to 2018, the government subsidies received by BYD accounted for 14.07%, 31.37%, and 74.55% of the year's net profit respectively.

Now that we have entered the post-subsidy era of new energy vehicles, it is not a good thing that BYD’s subsidy proportion is gradually increasing. Some experts believe that the most important thing for car companies is to polish their products, enrich their product lines, cultivate intensively, open up markets, dilute product costs as much as possible, expand product chains, business chains and value chains, and accelerate technological upgrading, in order to promote the sustainable development of enterprises. effective way.

This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.