• Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
Top Trading Strategy
No Result
View All Result
Home Breaking News

Chinese electric car company Nio hikes prices, suspends production

by
April 11, 2022
in Breaking News
0
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

Related Posts

September Vehicle Sales Forecast: 15.4 million SAAR, Up Sharply YoY

Q3 GDP Tracking: Around 3%

Philly Fed: State Coincident Indexes Increased in 40 States in August (3-Month Basis)

Black Knight: Mortgage Delinquency Rate Decreased Slightly in August

In this article

9866-HK

Nio said it has suspended production due to Covid-related restrictions in the last several weeks that halted production at suppliers’ factories.
Long Wei | Visual China Group | Getty Images

BEIJING — Chinese electric car company Nio said over the weekend it is raising prices and suspending production as the latest Covid wave added to supply chain challenges.

The company’s Hong Kong-listed shares fell nearly 9% in Monday morning trading.

Nio announced Sunday it would raise the prices for its three SUVs — the ES8, ES6 and EC6 — by 10,000 yuan ($1,572), effective May 10. Prices for the recently launched ET7 and ET5 sedans would remain the same.

Raw material prices, particularly those for batteries, have risen “too much” this year with no downward trend in sight for the near term, CEO William Li said as part of the announcement, according to a CNBC translation of the Chinese statement.

“Originally [we] thought we could bear it, but now with this pandemic it’s even harder to bear,” he said. “We have no alternative but to raise prices. Please be understanding.”

A day earlier, on Saturday, Nio said it suspended production due to Covid-related restrictions in the last several weeks that halted production at suppliers’ factories.

“Due to the impact of Covid on Changchun and Hebei, the supply of some of our auto parts has been cut off since mid-March,” Li said. The company’s production “managed to rely on auto parts inventory until last week.”

He added that as a result of recent Covid outbreaks in Shanghai and Jiangsu province, many suppliers can’t provide parts either.

The company began deliveries of its first sedan, the ET7, in late March. A second sedan, the ET5, is set to begin deliveries in September.

Industry-wide price hikes

In terms of monthly deliveries, Nio has lagged behind those of rival start-ups Xpeng — whose cars sell in a lower price range — and Li Auto — whose only model on the market comes with a fuel tank for charging the battery. All three companies delivered more cars in March than February despite supply chain challenges.

Nio was the last of the three start-ups to raise prices.

In March, Xpeng hiked prices for its cars by 10,100 yuan to 20,000 yuan, while Li Auto raised prices by 11,800 yuan. The moves follow Tesla and other electric car companies in the country that have raised prices in the last several weeks.

Read more about China from CNBC Pro

Raising a kid is getting expensive in China — buy these global stocks to cash in, Jefferies says

Credit Suisse picks Chinese ‘little giant’ stocks, says the start-ups are a growing force

JPMorgan says 3 stocks could be winners if U.S.-listed Chinese stocks avert delisting

Covid-related disruptions have hit traditional automakers as well.

Volkswagen said 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 price index rose by 1.1% in March from a month earlier and gained 8.3% from a year ago, according to official figures released Monday. The year-on-year increase topped expectations for a 7.9% increase forecast by a Reuters poll.

— CNBC’s Arjun Kharpal contributed to this report.

Next Post

Suddenly everyone is obsessed about a recession: Morning Brief

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Popular Posts

Breaking News

Q3 GDP Tracking: Around 3%

by
September 22, 2023
0

by Calculated Risk on 9/22/2023 08:28:00 AM From BofA: Overall, the data flow since our last report left our 3Q...

Read more

Q3 GDP Tracking: Around 3%

September Vehicle Sales Forecast: 15.4 million SAAR, Up Sharply YoY

Philly Fed: State Coincident Indexes Increased in 40 States in August (3-Month Basis)

Black Knight: Mortgage Delinquency Rate Decreased Slightly in August

Tesla Stock Is Dropping Again. Here’s How Far It Could Fall.

‘Now is not the time to become scared’: Daniel Ives says AI-driven growth will lift tech stocks in the upcoming year — here are 2 names that he likes right now

Load More

All rights reserved by www.toptradingstrategy.net

  • Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting
No Result
View All Result
  • Home
  • Breaking News
  • Privacy Policy
  • Email Whitelisting

© 2023 JNews - Premium WordPress news & magazine theme by Jegtheme.