Covid blocks the production of electric cars

The Chinese brand announced that it was forced to stop production following the increase in cases. The situation in Shanghai, where the carmaker has several plants, is worrying

Federico Mariani

April 10, 2022 – 6:03 pm

Covid-19 worries China again. The increase in cases, ei lockdown following, is destined to have important repercussions also on the world of engines. A concrete example of this is the choice made by Nio: the Chinese electric vehicle manufacturer was forced to block the supply chain in several cities due to the strict regulations adopted to curb the coronavirus. The next few weeks are promising to be very complicated for the entire production of the car brand.

explanation

The announcement was made directly by Nio on Saturday 9 April 2022. The explanation was as simple as it was dramatic in its consequences: “Since March, due to the epidemic, the company’s supplier partners in some cities, including Jilin , Shanghai and Jiangsu, have suspended production one after the other and have yet to recover ”. Consequently, deliveries of electric vehicles to customers have been postponed pending an improvement in the situation and new indications provided by the government. For the Chinese brand it is a bad setback, especially looking at the data of the last quarter. Industry data shows a 29% increase in vehicle deliveries. 25,768 cars sold between January and March.

emergency

Moreover, Nio is not helped by the presence of its factories and interactive centers in Shanghai, one of the centers most affected by this new wave, to the point of recording 80% of infections nationwide. The 25 million inhabitants of the city are in lockdown and to cope with the increase in cases a large hospital has recently been inaugurated, with 50,000 beds. Furthermore, the escalation must be monitored, since within a few days the closures have extended from a few neighborhoods to the entire metropolis. And the numbers do not allow us to hypothesize a rapid return of the alarm: in the last day more than 22,000 cases were recorded. A very worrying record for China and, consequently, also for Nio.



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