Li Auto is the latest company to lower its delivery expectations due to the Covid-19 outbreak in Malaysia affecting its supplier's chip supply.
Covid-19 in Malaysia has caused a severe disruption in the production of dedicated chips for its millimeter-wave radar supplier, and as a result, it lowers delivery expectations for the third quarter by 500-1,500 units, according to an announcement from the company on Monday.
Because of a slower-than-expected recovery in chip supply, Li Auto now expects its deliveries in the third quarter to be about 24,500 units, down from its previous guidance of 25,000-26,000 units.
Li Auto will continue to monitor the ongoing market conditions and closely work with its supply chain partners to minimize the impact of the chip shortage on its production, it said.
Li Auto delivered 8,589 and 9,433 vehicles in July and August, respectively, and the latest guidance means it expects to deliver about 6,478 vehicles in September, down 31 percent from August.
On September 1, NIO lowered its previous expectations for third-quarter deliveries by 500-1,500 units when it announced August deliveries. The company expects to deliver 22,500-23,500 units in the third quarter, down from the 23,000-25,000 units guidance it gave in its second-quarter report on August 12.
NIO said that if the supply chain problem does not deteriorate further, September's deliveries could set another monthly delivery record.
Li Auto delivered a record 9,433 Li ONEs in August, the company's only model, up 248 percent year-on-year and up 9.8 percent from July.
For the first eight months of 2021, Li Auto has delivered a total of 48,176 units.
The Li ONE is an electric vehicle with extended-range technology and has a three-cylinder engine as a range extender.
The Li ONE is initially available in October 2019. On May 25 of this year, Li Auto released the 2021 Li ONE with a starting price of RMB 10,000 ($1,560) higher than the previous version, at RMB 338,000.
Deliveries of the new Li ONE began on June 1.