Chinese EV startups say sales may increase, post-lockdown production limited

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The three companies warned that production had yet to fully recover, constrained by parts supply issues. Shanghai, a key production hub, ended its two-month lockdown for most residents on Wednesday.

Electric vehicle start-ups in China reported stronger sales in May and forecast continued gains for June as supply chains and production begin to recover from the disruption of COVID-19 lockdowns in Shanghai and in other cities.

Li Auto Inc announced a 166% gain in May sales from a year earlier to 11,496 vehicles on Wednesday. Xpeng Inc posted a 78% gain with 10,125 deliveries. Nio Inc delivered 7,024 electric vehicles, up 5% from the previous year.

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The three companies warned that production had yet to fully recover, constrained by parts supply issues. Shanghai, a key production hub, ended its two-month lockdown for most residents on Wednesday.

Industry-wide sales data for May, including for China’s electric vehicle leaders BYD and Tesla, are expected by next week.

China announced a series of measures to support auto sales and the sagging economy, including a halving of the tax on purchases of small-engined cars with list prices of up to around $45,000. In a report on Wednesday, Fitch said it expects sales in the world’s biggest auto market to rise 3.9% this year after growing 3.8% in 2021.

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But Fitch also warned of the risks: “The local market faces significant challenges, ranging from a limited supply of new vehicles, high unemployment and weak local construction and construction sectors. immovable”.

Li Auto warned that supplier shipments around Shanghai remained disrupted. “We continue to experience difficulties due to parts supply shortages,” Li Auto Chairman Yanan Shen said in a statement.

Xpeng said it restarted two shifts at its factory in southern China and was working to speed up deliveries. Nio said it plans to ramp up production in June after recent moves to end lockdown restrictions.

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