Chip Shortage

The change delayed Nio's average delivery time by four days. Excluding invoicing, Nio would have basically been able to go from order receipt to delivery in a little more than two weeks in May.

In the midst of a global chip shortage, the price of MCU (microcontroller unit), an important component in automobiles, continues to rise.

Renesas holds nearly one-third of the global market share for automotive microcontroller chips, and the March fire hit global automotive production hard.

A global chip shortage could continue through the end of the year and even into early next year, Chinese electric vehicle maker Li Auto co-founder and president Shen Yanan said on Wednesday.

FAW-Volkswagen had planned to produce about 610,000 vehicles in the second quarter of this year, but due to chip shortages, it is expected to produce only 400,000 vehicles, a cut of about 30 percent, yicai.com reported Monday.

The CAAM said that the tight supply of components, including chips, will continue to affect the production pace of car companies, which are expected to be affected more in the second quarter than in the first quarter.

William Li is confident about Nio's position in the market, saying that in the high-end market there is no brand that can compete fully with Nio, including products, services, and user communities.

Great Wall Motor admitted that its chip supply is tight and production at its plants has been affected to some extent, but denied that production at its two production sites has been halted.

With many black swan events happening in the world that are affecting chip supply, "we have to be prepared for the long term, which is a new subject," Qin Lihong, co-founder and president of Chinese electric vehicle company Nio, said Monday.

The chips that caused FAW-VW Audi to reduce production are mainly door controller, gateway controller, center display, and electronic stability control.