Home » TECH AND INTERNET » Chinese EV maker Nio cut sales forecast due to chip supply shortage

Chinese EV maker Nio cut sales forecast due to chip supply shortage

FILE Photo: A NIO charging station is observed shown at its retail outlet in Beijing, China August 20, 2020. REUTERS/Tingshu Wang/File Picture

September 1, 2021

BEIJING (Reuters) – Chinese electric powered car (EV) maker Nio Inc on Wednesday lower its supply forecast for the third quarter this calendar year thanks to uncertain and risky semiconductor materials.

Nio slice its shipping forecast for the third quarter to about 22,500 to 23,500 motor vehicles from a previous 23,000-25,000 automobiles. It shipped 5,880 electric powered athletics-utility autos last month, up 48% from a yr earlier.

Li Car Inc, which sells prolonged-variety electric powered automobiles, reported it sold 9,433 cars last month, up 248% from a calendar year earlier. It targets 10,000 units month-to-month gross sales in September.

Xpeng Inc bought 7,214 cars in August, up 172% 12 months-on-year. Its main government He Xiaopeng mentioned it expects month to month deliveries to achieve 15,000 units in the last quarter this year.

A extended worldwide chip shortage has caught key automakers like Ford Motor, Honda Motor, Basic Motors and Volkswagen off guard, forcing many to idle or curtail generation.

The shortage was not likely to resolve shortly as the pandemic rages on in quite a few parts of the globe, China’s best auto business physique reported final thirty day period.

U.S. mentioned shares of Nio have been down 4.3% at $37.63 in premarket investing, whilst Xpeng fell far more than 2%.

Li Vehicle, Nio and Xpeng are a few top Chinese EV startups that contend with U.S. electric powered motor vehicle maker Tesla Inc and area firms like Geely and Fantastic Wall Motor.

Individually, Tesla experienced sold 32,968 China-built vehicles in July, like 24,347 for export, in accordance to data from the China Passenger Motor vehicle Association previous month.

Even so, community sales of China-designed Tesla motor vehicles experienced plunged 69% month-in excess of-thirty day period to 8,621 cars and trucks in July. The firm would make electric Design 3 sedans and Model Y sport-utility autos in a Shanghai plant.

China revenue, which account for almost a third of its total income, is carefully viewed as a signal of the automaker’s health in its 2nd largest marketplace, the place it has invested closely.

(Reporting by Yilei Solar and Brenda Goh in Beijing and Akanksha Rana in Bengaluru Modifying by Louise Heavens and Arun Koyyur)

Resource connection