BEIJING, Nov. 2 (BNA): Chinese electric car maker Nio said it has halted production due to COVID-19 restrictions as rising cases across the country caused further disruptions to business activity, sending its shares down sharply.
Local tech news outlet 36Kr reported that Nio began facing production challenges in mid-October due to virus prevention measures that eventually led to the shutdown of both of its factories in the central city of Hefei, according to Reuters.
Shares of Nio fell 7.5% to HK$75.50. The company ranked No. 13 among the best-selling electric vehicle manufacturers in China based on vehicle sales from January to September, according to the China Passenger Car Association.
The suspension of Nio production comes as China grapples with a growing number of cases in several major cities with lockdowns and strict restrictions that have disrupted travel and fueled worker discontent at Apple’s flagship Foxconn.
The latest Hefei outbreak began in early October, prompting authorities to put parts of the city under lockdown at various times, including the area where Nio’s factories are located.
Nio apologized to its customers on Monday in a statement revealing October delivery numbers for late deliveries, saying its production base was severely affected by the pandemic. It said 10,059 vehicles were delivered in October, down 7.5% from 10,878 in September.
Nio was also forced to suspend production in April after COVID restrictions put several of its supplier partners out of business.
FAE