Without naming the factory, Nio’s Chairman William Li said during an earnings conference call he expects the negative impact of the fire to hit the auto supply chain in mid-May. The industry generally expects the shortage will reach a turning point in the third quarter, Li said.
For now, Nio had to halt production for five working days around the end of March, which will affect vehicle deliveries for April, Li said.
The start-up forecast second-quarter deliveries of between 21,000 and 22,000 vehicles, for growth of 5% to 10% from the first three months of the year. That’s a significant quarter-on-quarter slowdown from growth of 16% in the first quarter, and 42% in the fourth quarter.
Despite challenges from the supply chain and technological development, Li said the company’s first sedan, the ET7, remains on track for its scheduled launch to customers in the first quarter of 2022.
Nio delivered 20,060 vehicles in the first quarter, the most among its U.S.-listed electric car start-up peers in China. On Friday, Nio said vehicle sales for the period were 7.41 billion yuan ($1.13 billion).
Vehicle margin, a measure of profitability, rose to 21.2% in the first quarter, up from 17.2% the prior quarter. The increase was due mostly to consumers buying Nio’s driving assistance software and upgrading to a more expensive battery subscription plan, management said.
The 100 kilowatt-hour battery power plan costs 1,480 yuan ($228) a month, versus 980 yuan for the 70 kilowatt-hour plan.