In response to unpredictable and variable semiconductor supply, Chinese electric vehicle (EV) manufacturer Nio Inc (NIO.N) reduced its delivery prediction by one month for the third quarter of this year. Nio has reduced its delivery expectation for the 3rd quarter to about 22,500 to 23,500 vehicles, down from an earlier forecast of 23,000 to 25,000 vehicles for the period. It shipped 5,880 electric sport utility vehicles in the month of December, representing a 48 percent increase over the same month the previous year.
Sales of extended-range electric vehicles by Li Auto Inc (L87Ay.F), which sells 9,433 units in January, were up 248 percent from the same month a year earlier. In September, the company expects to sell 10,000 units each month. Xpeng Inc (9868. HK) sold 7,214 automobiles in August, representing a 172 percent increase yearly. His chief executive, He Xiaopeng, stated that the company anticipates monthly deliveries to hit 15,000 units by the end of this year’s third quarter.
Ford Motor (F.N), General Motors (GM.N), Honda Motor (7267.T), and Volkswagen (VOWG p.DE) were among the major automakers caught off guard by a prolonged global chip shortage, which forced many of them to stop or limit production for extended periods. According to China’s leading car industry authority, the issue is unlikely to be resolved very soon as the epidemic continues to wreak havoc in many world regions.
Nio’s shares, which are publicly traded in the United States, sank 4.3 percent to $37.63 in the premarket trading, while Xpeng Company fell more than 2 percent. Electric vehicle start-ups Li Auto, Nio, and Xpeng compete with global players such as Tesla Inc (TSLA.O), Geely (GEELY.UL), and Great Wall Motor (GEELY.UL) as well as domestic players such as Geely and the Great Wall Motor (601633.SS).
The China Passenger Car Association published data earlier this month showing that Tesla sold 32,968 China-manufactured vehicles in July, comprising 24,347 vehicles for export, according to the data from China Passenger Car Association. However, the local sales of Tesla vehicles, which are manufactured in China, fell by 69 percent month on month in July, to 8,621 vehicles. In a plant in Shanghai, the business manufactures electric Model 3 cars as well as Model Y sport-utility vehicles, among other things. Sales in China, which account for roughly a third of the company’s overall sales, are keenly watched as a barometer of the company’s health in the country, which is the company’s second-largest market and where it has extensively invested.