Chinese electric car company Nio hikes prices, suspends production

Nio reported it has suspended generation thanks to Covid-associated limitations in the previous quite a few weeks that halted generation at suppliers’ factories.

Long Wei | Visible China Team | Getty Photographs

BEIJING — Chinese electric motor vehicle company Nio stated around the weekend it is raising prices and suspending creation as the newest Covid wave added to offer chain troubles.

The firm’s Hong Kong-stated shares fell approximately 9% in Monday early morning buying and selling.

Nio declared Sunday it would raise the price ranges for its three SUVs — the ES8, ES6 and EC6 — by 10,000 yuan ($1,572), effective May possibly 10. Rates for the recently released ET7 and ET5 sedans would keep on being the exact.

Uncooked substance price ranges, notably these for batteries, have risen “far too substantially” this 12 months with no downward development in sight for the in close proximity to phrase, CEO William Li claimed as aspect of the announcement, in accordance to a CNBC translation of the Chinese statement.

“Initially [we] imagined we could bear it, but now with this pandemic it is even tougher to bear,” he mentioned. “We have no different but to increase selling prices. Please be comprehending.”

A day previously, on Saturday, Nio claimed it suspended generation due to Covid-linked restrictions in the last various weeks that halted output at suppliers’ factories.

“Thanks to the impression of Covid on Changchun and Hebei, the provide of some of our auto components has been slash off given that mid-March,” Li stated. The firm’s output “managed to rely on vehicle components stock until last 7 days.”

He included that as a consequence of recent Covid outbreaks in Shanghai and Jiangsu province, a lot of suppliers can not give pieces possibly.

The business started deliveries of its very first sedan, the ET7, in late March. A next sedan, the ET5, is established to commence deliveries in September.

Marketplace-huge selling price hikes

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Covid-associated disruptions have strike conventional automakers as effectively.

Volkswagen reported Thursday its factories in Anting on the outskirts of Shanghai and Changchun in the northern province of Jilin remained closed through Friday, April 8.

China’s producer cost index rose by 1.1% in March from a month before and obtained 8.3% from a year in the past, according to formal figures released Monday. The yr-on-year enhance topped expectations for a 7.9% increase forecast by a Reuters poll.

— CNBC’s Arjun Kharpal contributed to this report.