According to William Li, the founder, chairman, and CEO of NIO, the recent surge in COVID-19 cases in China, which was fueled by the abandonment of the zero-COVID policy in December, has had an impact on the automotive industry.
However, Li believes that the effects on the industry will start to subside in the coming months, with the supply chain expected to stabilize by March or April, taking into account the Lunar New Year holiday.
The impact of China's Covid restrictions will be gone soon, Chinese EV maker Nio CEO William Li says, adding the auto industry will return to normal in the near future.
— Bloomberg (@business) January 3, 2023
According to Li, the reopening of businesses in China will have a temporary negative impact on both the region where Nio is headquartered and the company’s supply chain partners. However, he emphasized that the car industry and supply chain will soon return to normal.
Despite Nio setting a record high for car deliveries in December with 15,815, the numbers were still below expectations. In a group interview, Li also mentioned that the market for new energy vehicles (NEVs) in China will be difficult in the first half of 2023 due to the termination of purchase subsidies.
He added that it will take time for consumer trust to be restored in China as the country moves past the COVID measures.