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NIO, XPeng, Li Auto Deliveries Hit by Lockdown-Related Supply Chain Issues

Published 02/05/2022, 15:38
©  Reuters
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By Sam Boughedda

Investing.com -- Chinese electric vehicle companies NIO, XPeng, and Li Auto said that supply chain issues resulting from the ongoing COVID situation in the country impacted deliveries in April.

Nio Inc.'s (NYSE:NIO) April deliveries took a significant hit after production was briefly halted during the month due to COVID lockdowns in China. NIO delivered 5,074 vehicles in April 2022, down almost 50% from the 9,985 delivered in March and decreasing from the 7,102 cars in April 2021.

NIO stated: "Vehicle production and delivery have been impacted by the supply chain volatilities and other constraints caused by a new wave of the COVID-19 outbreaks in certain regions in China. The vehicle production has been recovering gradually. "

NIO stock rose 2% in early Monday trading.

Xpeng (NYSE:XPEV) delivered 9,002 vehicles in April 2022, representing a 75% increase year-over-year. However, it was significantly lower than the 15,414 from the previous month.

"The company has been and is continuing to actively navigate through the COVID situation, which in turn is affecting the overall supply chain, manufacturing and transportation of automobiles in China," XPeng stated.

After opening lower, XPeng shares have since climbed 0.8%.

In April, Li Auto (NASDAQ:LI) delivered 4,167 Li ONEs, declining from the 11,034 Li ONEs delivered in March. It is also below the 5,539 Li ONEs delivered in April 2021.

“The COVID-19 resurgence in the Yangtze Delta region continues to cause severe industry-wide disruptions in supply chain, logistics and production since late March," said Yanan Shen, co-founder and president of Li Auto.

He continued that some of its suppliers completely shut down production or delivery of their products during the month, making it impossible to maintain production after exhausting its parts inventory.

"At present, we are working with our supply chain partners to restore production capacity, aiming to shorten the delivery waiting time for Li ONE users, while meeting all pandemic prevention and containment requirements,” stated Shen.

Li Auto stock is up 2.41% Monday.

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