Financial Analysis of China's New Energy Vehicle Industry under the Harvard Analytical Framework: A Case Study of BYD Company Limited and NIO Inc.

Abstract

As the climate conditions continue to deteriorate, countries around the world are joining the ranks of energy conservation and emission reduction, bringing more energy-saving and environmentally friendly new energy products into the public eye. Enterprises represented by new energy vehicles have thus received considerable attention. This paper is based on the Harvard Analysis Framework and focuses on BYD Company Limited (hereafter referred to as BYD) and NIO Inc. (hereafter referred to as NIO) as research subjects. It delves into the new energy industry from four dimensions: strategy, accounting, finance, and development, in the context of the broader environment. The analysis reveals similarities and differences in some key financial indicators between the two companies, explains the reasons behind these differences, summarizes the current industry situation, and forecasts future development prospects. By comprehensively applying the Harvard Analysis Framework, the article not only understands the financial performance of BYD and NIO but also provides a reliable basis for decision-making for investors and governments. Through this analysis, the paper aims to support the sustainable development of the new energy vehicle industry, further promoting its healthy growth.