Tax incentives and responsible technological innovation in China's new energy vehicle industry: Evidence from NIO.

Abstract

This study presents an exploratory, qualitative single-case analysis examining the critical relationship between fiscal incentives and technological innovation within China’s new energy vehicle (NEV) industry, focusing on NIO Inc. as the primary subject of analysis. Grounded in theories of technology governance and public value creation, the research systematically maps public policy documents, academic literature, and audited financial disclosures spanning the 2021–2024 period. Specifically, the evaluative framework assesses the integration of three core policy instruments: purchase tax exemptions, research and development (R&D) subsidies, and strategic fiscal guidance. To ground this empirical inquiry, NIO’s longitudinal trends in vehicle deliveries, corporate revenues, R&D expenditures, vehicle margins, and net losses are analysed in tandem with shifting regulatory phases. The findings demonstrate that while these fiscal incentives effectively mitigate capital burdens and catalyse market demand, their long-term efficacy remains highly contingent upon institutional policy integrity which defined by transparent eligibility criteria and structural predictability, coupled with robust internal strategic management. Therefore, this study contends that future fiscal evaluations must surpass volume-centric sales metrics to rigorously assess substantive green innovation quality and mitigate the risks of structural policy dependency. To generalize and expand upon these interpretive insights, the study concludes by proposing a comparative, multi-firm framework for subsequent research.