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Demand is sustained and the problem is in the supply chain

Beijing- NioThe biggest challenge right now is to make sure the supply chain is stable, CEO William Li told CNBC.

Chinese electric car makers have had to increase their bills to their customers due to soaring raw material prices.

When Covid’s management in April made Nio unable to obtain parts from its suppliers, The company had to temporarily stop production.. However, the company said it was able to resume some production in a few days.

Still, as of Thursday, Lee said China’s overall state of car production was in the process of recovering while Shanghai and other parts of the country were under Covid’s control.

On the sales side, Lee said he expects consumer demand for electric vehicles to continue even if the Chinese government cuts subsidies and other policy support for the sector.

Chinese electric vehicle company Nio delivered more than 5,000 vehicles in April, despite Covid restrictions in some parts of China, starting with nearly 10,000 vehicles delivered in March. It has decreased significantly.

Future Publishing | Future Publishing | Getty Images

Nio delivered more than 5,000 cars in April, despite Covid’s limits, a significant drop from the delivery of nearly 10,000 cars in March.

According to the China Passenger Car Association, passenger car sales fell 35.5% year-on-year in April, while new energy vehicle sales, including battery-powered electric vehicles, surged 78.4%.

Nio’s Southeast Asia Plan

Li, the founder and chairman of Nio, spoke in an interview with CNBC. Emily Tan Prior to the company’s second listing in Singapore.

On Friday, Nio made a secondary listing on the Stock Exchange of Singapore as an introduction. This is different from an initial public offering because no new capital is raised and less paperwork is required.

Instead, listing allows investors to trade company stock primarily on exchanges other than the major exchanges.

In early March Nio also conducted a second listing in Hong Kong As an introduction. The company’s first major listing remains on the New York Stock Exchange.

Car executives didn’t elaborate on why the company chose Singapore as its third listing, but said Nio could reach more investors this way.

But Lee said Nio plans to export cars to Southeast Asia in the near future and open a R & D center in Singapore for artificial intelligence and autonomous driving. He did not provide a specific date.

So far, the company We have concentrated most of our overseas expansion in Europe, mainly Norway.

The startup’s main exchange remains the New York Stock Exchange, which went public in 2018.

US-listed Nio shares have risen about 150% since their IPO. This was a volatile three-year or more, including a quarterly plunge and one year in 2020, with a surge of over 1,100%.

Chinese electric vehicle company Nio delivered more than 5,000 vehicles in April, despite Covid restrictions in some parts of China, starting with nearly 10,000 vehicles delivered in March. It has decreased significantly.

Future Publishing | Future Publishing | Getty Images

Demand is sustained and the problem is in the supply chain

Source link Demand is sustained and the problem is in the supply chain

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