NIO is resuming production after a Covid halt
Chinese electric vehicle (EV) maker NIO said Thursday it is gradually resuming production, after temporarily halting operations due to the latest round of Covid rise.
Previously, a number of automakers located in Jilin and Shanghai, including FAW Group, Tesla, and SAIC Group companies, have been forced to shut down production due to Covid-related restrictions.
Although NIO’s plant in Hefei, east China, was not directly affected by the outbreak, snags in the supply chain hampered its production.On April 9, the EV maker said it had suspended production because some of its suppliers in Jilin and Shanghai were unable to supply parts.
Now, as the supply chain is recovering slightly, the Hefei base is gradually resuming production.
Sill, the company noted that future production plans depend on the recovery of its supply chain.
NIO recently hiked the pricing, claiming that raw material prices, particularly battery prices, had climbed too much and were not expected to fall any time soon. Prices of its three SUVs, ES8, ES6 and EC6, will increase by 10,000 yuan ($1,572) from May 10, while prices for the newly launched ET7 and ET5 sedans would remain the same.
The Tencent-supported EV brand is facing stiff competition in the domestic market, especially as established automaker BYD ramps up its investments in the EV segment.
In March, BYD sold 53,664 all-electric vehicles, up 229% from a year earlier, marking the first time that the Warren Buffett-backed company has surpassed 100,000 cumulative electric vehicle deliveries.
Meanwhile, XPeng Motors sold 15,414 electric vehicles in March, up 202% from a year earlier. In Tesla’s earnings report, it said that its Shanghai gigafactory delivered about 310,000 vehicles in the first quarter, a quarterly record.
In comparison to competitors, NIO’s sales figures are dwarfed, with 9,985 electric vehicles sold in March, a 38% increase over the previous year.