It looks like your browser is not up to date.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

EV start-up Nio announces chip shortage will affect car production

Tue 02 March 2021 09:58 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - Chinese electric car start-up Nio said on Tuesday that the global shortage in semiconductors and batteries will affect its production capacity in the second quarter.

The company expects to cut its output capacity of electric vehicles to 7,500 a month over the three months to June, down from the 10,000 reached in the first quarter.

The company had ramped up production capacity in February to 10,000 vehicles a month, founder William Li said in a quarterly earnings call on Tuesday.

Nio delivered 7,225 vehicles in January and 5,578 in February amid the week-long Lunar New Year holiday.

Li said manufacturing is expected to increase again in July, for a total annual production capacity of 150,000 vehicles under one work shift. In 2022, the company may consider doubling the shifts and raise production to 300,000 units a year.

The chip shortage which was caused by high demand for electronics amid the coronavirus pandemic and pressure from US-China trade tensions on the highly specialized semiconductor supply chain, has affected many carmakers worldwide.

The EV start-up is still working on its expansion into Europe later on this year.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.


    More company news from ShareCast