China’s Nio Has Halted EV Production Over Supply Chain Issues

This past weekend China-based electric-vehicle maker Nio Inc. warned of delivery delays after suspending production due to COVID-19 restrictions that have disrupted its supply chain.

According to a Reuters report, Nio announced on its mobile app on April 9 that it shuttered the plant after its suppliers in various cities shut down production because of a Covid outbreak lockdown in Shanghai.

“There will be a delay in the delivery of vehicles for many customers in the near future, and we ask for your understanding,” Nio said in a statement on its mobile app on Saturday.

The company added, “Since March, due to reasons to do with the epidemic, the company’s supplier partners in several places including Jilin, Shanghai and Jiangsu suspended production one after the other and have yet to recover. Due to the impact of this Nio has had to halt car production.”

Strict lockdown measures have been imposed in Shanghai and other parts of China to slow the spread of the omicron variant of the coronavirus.

Nio also shut its plant from Sept. 28 to Oct. 15, 2021, to restructure and upgrade manufacturing lines and prepare to introduce new products. The shutdown resulted it the company delivering only 3,667 vehicles in October 2021, a 27.5% decrease year-over-year.

Tesla and Volkswagen have also temporarily shuttered production facilities in the country due to the lockdowns.

Earlier this month, Nio reported record quarterly deliveries of 25,768 vehicles.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.