Covid-19 restrictions kept NIO's October deliveries from hitting record highs as previously thought, a report from Bloomberg citing people familiar with the matter said.
In its report, Bloomberg said the Covid-19 restrictions saw the loss of about 7,000 electric vehicles in production, meaning shipments had fallen by about 5,000.
Figures released on November 1 showed NIO delivered 10,059 vehicles in October, down 7.5 percent from 10,878 in September.
A Bloomberg report said in October it was projected that shipments could hit a record high of around 15,000 if there were no Covid restrictions. NIO would be able to produce 7,000 more vehicles if there were no Covid shocks.
NIO's one-month deliver record came in June this year, when the company delivered 12,961 electric vehicles to consumers.
Tighter controls due to Covid-19 are something NIO management did not anticipate, as founder, chairman and CEO William Li said in a conference call after announcing a second-quarter report on September 7 that he believes shipments will hit a record high every year. fourth quarter month.
Local media outlet 36kr reports citing a source familiar with the matter as saying that NIO's production at two factories in Hefei, Anhui province has been facing challenges since mid-October.
In line with Covid prevention and control, the JAC-NIO F1 factory initially planned to temporarily halt production for 3-5 days and use spare parts inventory to produce in a closed environment, but later the lockdown was extended which affected production and delivery.
NIO said Covid was affecting production and delivery schedules. Yesterday, the company said it had resumed production at its factory.
A recent Bloomberg report said that production at the NIO plant was also affected by spare parts supply chain problems.
NIO currently sells six models in China, including three SUVs based on the NT 1.0 platform — ES8, ES6 and EC6 — and three models based on the NT 2.0 platform — ES7, ET7 and ET5.
Only the ET5 is produced at the F2 NIO plant in NeoPark, while all other models are produced at the JAC-NIO F1 plant.
