A few days after announcing the suspension of vehicle production at it’s plant in Hefei, NIO, one of the largest Chinese EV manufacturers, is reported to be preparing to gradually resume production. As for future production plans, it depends on how the supply chain recovers.
NIO‘s vehicle production was suspended last Saturday due to the most recent epidemic outbreak in Jilin, Shanghai, Jiangsu, among other places. As a result, the company faced an interruption in its supply chain and will need to delay deliveries for many of its customers.
In addition to the impact on output and delivery, this short suspension of production may also have a certain impact on NIO‘s plans for new vehicle models. NIO originally expected to deliver its flagship sedan ET7 in the second and third quarters of this year while also releasing the 2022 versions of the ES8, ES6, EC6 and the five-seat SUV ES7 in late May. Now, however, the company may have to alter those plans. NIO also announced that due to the rise in raw materials around the world, the company will need to make adjustments to the prices of its products beginning May 10.
Domestic automobile production and sales were significantly affected by multiple factors, such as the outbreak of the epidemic, chip shortages and the rapid rise in raw material prices, especially for those involved in battery production. According to the China Association of Automobile Manufacturers, in March, China’s automobile production and sales were 2.241 million units and 2.234 million units respectively, down 9.1% and 11.7% year-on-year.
Recently, 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 the new Covid pandemic outbreak. While NIO is ready to resume production, the FAW Group is also looking to restart its production processes. Jilin authorities said on April 11 that China FAW had fully resumed work on that same day and that 47 other parts companies were in the process of restarting their production lines.