Chinese electric vehicle maker NIO lowered its forecast for vehicle production this quarter on Wednesday, citing uncertainty over semiconductor supply and becoming the latest automaker to suffer from supply chain issues.
NIO now guides the production of 22,500 to 23,500 vehicles in the third quarter of 2021, revised from the previous outlook of 23,000 to 25,000 vehicles “in light of the continuing uncertainty and volatility of the semi-trailer supply. drivers, âthe Chinese electric vehicle maker said in its delivery update. for August.
NIO’s deliveries last month jumped 48.3% year-over-year to 5,880 vehicles, he said.
But he also noted, âWhile the company’s new order hit an all-time high in August due to growing demand, vehicle production, especially the manufacture of the ES6 and EC6, was materially disrupted by supply chain constraints resulting from the COVID-19 pandemic in parts of China and Malaysia.
NIO is the latest victim of the global semiconductor shortage, which has worsened in recent weeks due to the surge in COVID epidemics in major chip-making countries in Asia.
Two of the world’s largest automakers, Toyota and Volkswagen, said in August they would cut vehicle production in the near term due to the semiconductor shortage. The news comes as the Covid-19 epidemics in Asia have significantly slowed down chip production and operations at commercial ports, delaying production in the auto industry amid recovering demand.
American automakers are also affected by the chip shortage. In early August, General Motors idled its three assembly plants in North America that make full-size pickup trucks for a week.
âThe recent schedule adjustments have been driven by temporary parts shortages caused by semiconductor supply constraints in international markets facing restrictions related to COVID-19,â GM said.
Ford was also forced to suspend its Kansas City assembly plant, which makes the best-selling F-150 pickup truck, for a week in August, citing semiconductor supply shortages due to soaring cases of COVID in Malaysia.
By Tsvetana Paraskova for OilUSD
More reads on Oil Octobers: