Analysis of the Reasons for the Development of the New Energy Vehicle Industry and Prospects —Taking BYD as an Example

Recently, the new energy vehicle industry has been a popular field. Many nations are trying to catch this tendency. The paper uses references and observation as measures to research. Then, the paper analyzes green development and energy resources safety. The broadening of new energy vehicles is helpful for reducing the emission of carbon dioxide and decreasing oil imports. What are the positive conditions encouraging the development of the new energy vehicle industry? There are two potential aspects which are policy support and the maturation of related industry chains. By operating a series of supporting policies like financial subsidies, the Chinese government encourages the development of the new energy vehicle industry. Moreover, the maturation of related industries like new energy vehicle batteries and telematics systems also motivates the improvement of the new energy vehicle industry. To prove the supposes above, take BYD as an example. As the biggest new energy vehicle producer in China, BYD has a mature industry chain like Fin dreams factories. For the financial data in recent years, BYD has brilliant performance, its income and market sustained an increase from 2017 to 2022. Moreover, its other financial index also keeps a great performance like PB and ROE. It can represent that the new energy vehicle industry has a development in recent years. Finally, there are still many existing problems about new energy vehicles like charging time. In the future, the new energy vehicle would be broadened and automatic driving would be a new tendency.