Nio said it has suspended production due to Covid-related restrictions in recent weeks that have halted production at supplier factories.
Wei long | China Visual Group | fake images
company Hong Kong-listed shares it fell nearly 9% in Monday morning trading.
Nio announced on Sunday that it would increase the prices of its three SUVs, ES8, ES6 and EC6, by 10,000 yuan ($1,572), starting May 10. Prices for the recently launched ET7 and ET5 sedans would remain the same.
Commodity prices, particularly those of batteries, have risen “too much” this year and no downward trend is in sight any time soon, CEO William Li said as part of the announcement, according to a translation of CNBC’s Chinese statement.
“Originally [we] We thought we could handle it, but now with this pandemic it’s even harder to handle,” he said. “We have no alternative but to raise prices. Please be understanding.”
A day earlier, on Saturday, Nio said it has suspended production due to Covid-related restrictions in recent weeks that have halted production at supplier factories.
“Due to the impact of Covid in Changchun and Hebei, the supply of some of our auto parts has been cut off since mid-March,” Li said. The company’s production “managed to rely on auto parts inventory until last week.”
He added that as a result of the recent Covid outbreaks in Shanghai and Jiangsu province, many suppliers are also unable to provide parts.
The company began deliveries of its first sedan, the ET7, at the end of March. A second sedan, the ET5, is scheduled to begin deliveries in September.
In terms of monthly deliveries, Nio has lagged behind rival startups Xpeng — whose cars are sold in a lower price range — and li car — whose only model on the market comes with a fuel tank to charge the battery. the three companies delivered more cars in March than in February despite supply chain challenges.
Nio was the last of the three start-ups to raise prices.
In March, Xpeng raised its car prices by 10,100 yuan to 20,000 yuan, while Li Auto raised prices by 11,800 yuan. The moves continue Tesla and other electric car companies in the country that have high prices in recent weeks.
Covid-related disruptions have also hit traditional automakers.
Volkswagen said on Thursday that its factories in Anting on the outskirts of Shanghai and Changchun in the northern province of Jilin remained closed until Friday, April 8.
China’s producer price index rose 1.1% in March from a month earlier and 8.3% from a year earlier, according to official figures released on Monday. Year-over-year increase beat expectations for a 7.9% rise forecast from a Reuters poll.
— CNBC’s Arjun Kharpal contributed to this report.