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healthcareNovember 2, 2022

China's Nio suspends production due to COVID measures

Beijing, Nov. 2 (BNA): Chinese electric vehicle (EV) maker Nio said it has suspended production due to COVID-19 curbs as rising cases across the country cause more disruptions to business activity, triggering a steep drop in its shares.

Local tech news outlet 36Kr reported that Nio had begun to face production challenges in mid-October due to virus prevention measures that eventually led to both of its factories in the central city of Hefei stopping work, according to Reuters.

Shares of Nio fell as much as 7.5% to HK$75.50. The company was ranked No. 13 among the top selling electric vehicle makers in China based on Jan-Sept car sales, according to the China Passenger Car Association.

Nio's production suspension comes as China battles a rising number of cases in several major cities with lockdowns and stringent curbs that have disrupted travel and fuelled worker discontent at major Apple supplier Foxconn.

Hefei's latest outbreak begun in early October, prompting the authorities to put parts of the city under lockdown at various times, including the district where Nio's plants are located.

Nio apologised to its customers on Monday in a statement disclosing its October delivery figures for delayed deliveries, saying its production base had been severely impacted by the pandemic. It said that 10,059 vehicles were delivered in October, down 7.5% from September's 10,878.

Nio was also forced to suspend production in April after COVID curbs caused many of its supplier partners to stop work.