The Correlation Between Market Concentration and Market Profit Margin of New Energy Vehicles

Abstract

The current new energy vehicle market is in an emerging period. The internal structure and order of the market are in a developmental stage, and there is significant competition within the industry. In the current era where major enterprises are engaged in price wars, it is important to control profits. For policy makers, observing market concentration can better control policy direction and assist enterprise development. This study collected and analyzed data from the top ten companies in the market value of the new energy vehicle industry. Including CR ratio, net profit margin, etc. This article analyzes the correlation between industry profitability and industry profitability from a quantitative perspective through Pearson correlation coefficient analysis. Result is found that there are strong correlation between the two index. The study provides a reference basis for the development of new energy vehicle enterprises and also provides judgment assistance for investors entering the market.