Production at NIO's plants is indeed affected by the Covid epidemic, which is affecting production and delivery schedules, local media quoted a company source as saying.
(Image credit: CnEVPost)
Local media reported yesterday that NIO's two plants in Hefei, Anhui province, have recently shut down production due to local Covid control requirements, resulting in a general delay in the delivery schedule of its models. Today, the electric vehicle company confirmed that the report is true.
The news is true, local media Cailian today quoted a source at the company as saying, adding that production at NIO's plants has indeed been affected by the Covid epidemic, which will affect production and delivery schedules.
NIO's production has been facing challenges since mid-October, 36kr reported yesterday, citing people familiar with the matter.
In line with Covid prevention and control, the JAC-NIO F1 plant originally planned to temporarily shut down production for 3-5 days and use parts inventory to produce in a closed environment, but then the lockdown time was extended, leading to a greater impact on the overall production and delivery pace, according to 36kr.
NIO's F2 plant in NeoPark has also been under closed management recently, with the plant's vehicle assembly line suspended, the report said, citing sources familiar with the matter.
Notably, it looks like NIO's factory has not completely stopped operating.
The plant's lockdown and sporadic production shutdowns have caused NIO's recent delivery efficiency to drop significantly, the 36kr report said.
NIO released data yesterday showing that it delivered 10,059 vehicles in October, down 7.5 percent from 10,878 in September and up 174.31 percent from 3,667 a year earlier.
That delivery volume included 5,979 SUVs, including 2,814 ES7s, and 4,080 electric sedans, including 3,050 ET7s and 1,030 ET5s.
Only the ET5 is currently produced at NIO's F2 plant in NeoPark, while all other models are produced at the JAC-NIO F1 plant.
NIO's press release announcing its delivery figures said that production and delivery of its vehicles has been limited by operational challenges at the plant and supply chain fluctuations due to the Covid-19 situation in certain areas of China.
William Li, NIO's founder, chairman and CEO, said Tuesday in the comments section of the post about delivery numbers on the company's app that he hopes production of vehicles and parts can return to normal in November to deliver vehicles as soon as possible.