Chinese electric vehicle maker Nio cuts production forecast over supply grunts
Chinese automaker Nio Inc. has become the latest automaker to succumb to supply chain constraints, saying on Wednesday it would reduce its third-quarter delivery outlook amid “continued uncertainty and volatility in the market. ‘semiconductor supply’.
Nio now expects deliveries of around 22,500 to 23,500 vehicles for the previous quarter ending September 30, down from 23,000 to 25,000 previously.
Shares of the electric vehicle maker fell 5.4% Wednesday to 2.4% to $ 38.37 at 9:57 a.m. in New York. Shanghai-based Nio last month posted a smaller net loss of 587.2 million yuan or $ 91 million in the three months ended June 30 and is said to contact semiconductor vendors to mitigate the production impact of the global chip shortage.
CEO William Li said, “As the global supply chain continues to face uncertainties, we have been working closely with our partners to improve the overall production capacity of the supply chain. “
Nio also said it delivered 5,880 vehicles on Wednesday in August, up 48% from a year ago.
But as new orders for the month hit an all-time high, vehicle production, especially for the ES6 and EC6 models, was “significantly disrupted by supply chain constraints resulting from the Covid-19 pandemic in parts of China and Malaysia “.
A particular growl occurred with an interior trim supplier in Nanjing, east China, and that supplier has now resumed production, Nio said in a subsequent statement, adding that he was confident about deliveries. for this month.
The supply chain constraints induced by Covid have impacted many sectors as we are seeing a shift towards consumer preference for electronic vehicles, especially due to their affordability among others. The amazing characteristics they bring, we can expect the supply chain around the world to slow down until at least the first quarter of 2022.
The global supply chain has improved and will eventually pick up, but the backlog of orders is the main reason major suppliers like Nio are struggling while trying to keep up with their production numbers.
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