Tax Policy as a Driver of Innovation: A Case Study Analysis of BYD's R&D Growth in China's New Energy Vehicle Industry

Hantang Liu

doi:10.54254/2754-1169/2025.CAU28287

Advances in Economics, Management and Political SciencesOpen access

Tax Policy as a Driver of Innovation: A Case Study Analysis of BYD's R&D Growth in China's New Energy Vehicle Industry

Research Article

Open Access

Tax Policy as a Driver of Innovation: A Case Study Analysis of BYD's R&D Growth in China's New Energy Vehicle Industry

Hantang Liu ^1*

¹ RCF Experimental School

^*Corresponding author: liuhantang@rdfzcygj.cn

Published on 22 October 2025

AEMPS Vol.231

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-463-2

ISBN (Online): 978-1-80590-464-9

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Abstract

Adapting to the tax system is an inevitable requirement for increasing innovation efficiency in the new era. Based on the relevant data given in the annual report of BYD from 2020 to 2023, the impact of taxation on BYD's innovation ability and its improvement ideas are obtained through year by year comparison. Results show that the investment and income of BYD R&D have increased significantly, the number and structure of R&D personnel have changed, the effect of technological innovation is significant, and the tax policy has a positive impact on innovation. In order to further promote the innovation and development of the new energy vehicle industry, it is suggested that the government continue to optimize and improve relevant tax policies, such as increasing the proportion of pre-tax deduction of R&D expenses, implementing preferential tax policies for high-tech enterprises, and optimizing the accelerated depreciation policy of fixed assets. At the same time, the government can also introduce a series of tax policies to encourage the consumption of new energy vehicles, such as purchase tax relief, vehicle and vessel tax incentives, etc., in order to reduce the cost of consumer car purchase and improve the market acceptance of new energy vehicles. The research conclusions have important reference significance for improving innovation-related tax policies and promoting high-quality development of BYD and other new energy vehicle industries.

Keywords:

Innovation tax, Transformation of new energy enterprises, Policy coordination, New energy vehicle

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References

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