China’s Nio expects to sell less EVs amid Covid-19 crisis

Nio, a China-based electric vehicle (EV) company, has adjusted its outlook for the fourth quarter of 2022, aiming to sell 38,500 to 39,500 vehicles, down from 43,000 to 48,000 vehicles in its original outlook.

Photo credit: Nio

This comes as the company faces delivery and production challenges, as well as some supply chain constraints, driven by the Omicron outbreak in major cities in China, Nio said in a statement.

“While our teams have strived to maintain continuous operations on all fronts, we were not able to reach our full capacities, particularly when there have been disruptions in delivery and registration procedures involving users,” it added.

Founded in November 2014, Nio designs, develops, jointly manufactures, and sells premium smart EVs. It delivered 31,607 vehicles in Q3 of 2022, generating US$1.8 billion in total revenues and US$243.9 million in gross profit.

The Covid-19 virus is spreading rapidly in China. About 248 million people, or almost 18% of the population, might have contracted Covid-19 in the first 20 days of December, the country’s national health commission estimated.

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