Nio plans to start deliveries of its ET7 electrical sedan in 2022.

Evelyn Cheng | CNBC

BEIJING — Chinese language electrical automotive start-up Nio stated Friday it expects a world chip scarcity will drag down car deliveries within the second quarter.

A fire in March at a Japanese chip factory owned by Renesas has exacerbated an current shortfall in semiconductors that has pressured main automakers to chop manufacturing.

With out naming the manufacturing facility, Nio’s Chairman William Li stated throughout an earnings convention name he expects the damaging affect of the hearth to hit the auto provide chain in mid-Could. The trade typically expects the scarcity will attain a turning level within the third quarter, Li stated.

For now, Nio needed to halt production for five working days across the finish of March, which can have an effect on car deliveries for April, Li stated.

The beginning-up forecast second-quarter deliveries of between 21,000 and 22,000 automobiles, for progress of 5% to 10% from the primary three months of the yr. That is a big quarter-on-quarter slowdown from progress of 16% within the first quarter, and 42% within the fourth quarter.

Regardless of challenges from the availability chain and technological improvement, Li stated the corporate’s first sedan, the ET7, stays on observe for its scheduled launch to clients within the first quarter of 2022.

Nio delivered 20,060 vehicles in the first quarter, essentially the most amongst its U.S.-listed electrical automotive start-up friends in China. On Friday, Nio stated car gross sales for the interval have been 7.41 billion yuan ($1.13 billion).

Nevertheless, Elon Musk’s Tesla has been steadily ramping up manufacturing in China, which brought in sales of $3 billion in the first quarter for the automaker. China’s share of Tesla’s world gross sales rose to 29% within the first three months of this yr, up from 21% for all of 2020.

Tesla shares are down 4% to date this yr. Nio’s have declined 20%.

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