Chinese electric vehicle, or EV, maker Nio Inc – ADR (NYSE: NIO) reported a decline in February deliveries Tuesday amid supply chain disruptions and caution among consumers in the wake of the COVID-19 outbreak.
The Shanghai-based company said it delivered 707 vehicles in February, comprising 671 ES6s and 36 ES8s, its seven-seater high-performance electric SUV and its six-seater variant, respectively.
Cumulative deliveries of ES8 and ES6 vehicles total 34,218, with 2,305 of those delivered in 2020.
Nio Sales Fall 12.8% As Coronavirus Paralyzes China
After a summer lull in 2019, Nio's fortunes were beginning to turn around late last year.
The COVID-19 outbreak since late January has paralyzed the domestic Chinese economy and businesses.
Compared to the 78% year-over-year decline in overall passenger vehicle sales in China in February, Nio reported a 12.8% drop, the company said in a press release.
"Deliveries have been constrained as services are being cautiously reopened and people are encouraged to avoid unnecessary close-range contact," Chairman and CEO William Li said in a statement.
Following the disruptions, production started ramping up gradually in mid-February, and the supply chain remains challenging, Li said..
Nio CFO Says Return To Normal Will Take Time
Nio said it is taking advantage of online traffic channels to promote its products and services to potential users. The company's direct sales model, facilitated by purchase functions on the Nio app, has come in handy during the coronavirus outbreak, according to the company.
"We expect that it will take time for the industry and NIO to resume normal productions. We will keep monitoring and coordinating supply chain resources and accelerate productions to fulfill the growing demand," CFO Steven Feng said in a statement.
The company also said it expects to commence deliveries of the new ES8s in April.
Separately, Nio said it will release the financial results for the fourth quarter before the market opens March 18.
Nio shares were trading 7.9% higher at $3.55 in premarket trading Tuesday.
Photo courtesy of Nio.