Nio Inc’s NIO poor delivery performance in October due to lower production is not a "big deal," the Chinese electric vehicle maker’s co-founder and President Qin Lihong said, cnEVpost reported on Monday.
What Happened: Lingon said the manufacturing plant has resumed production and that the company is seeing a rise in orders.
The executive said Nio’s manufacturing facility in Hefei worked at full capacity for just ten days in October due to a production line revamp and upgrade.
As a result, "there were not enough vehicles that could be used for deliveries, which is not a big deal," the Nio preisdent reportedly said.
Nio delivered 3,667 vehicles in October, a drop of 27% year-on-year and 65.5% on a month-on-month basis. Rival XPeng Motors XPEV delivered 10,138 vehicles in October.
See Also: Xpeng Registers 233% YoY Rise In Deliveries For October But Numbers Fall Shy Of Record Month
Why It Matters: Nio delivered 10,628 vehicles globally in September, a record high for the company that was struggling to register growth in deliveries in the last few months.
The automaker, seen as a rival to Tesla Inc TSLA is reportedly looking to double production at the Hefei facility to 240,000 vehicles a year after a complete overhaul, which is expected to be completed in the first half of next year.
The Hefei facility can make sedan and sport-utility vehicle models. The plant would be able to make up to 300,000 cars a year after all the upgrades and extra shifts.
The expansion comes close to the heels of Nio’s overseas expansion. The electric vehicle maker has started delivering cars in Norway and plans to make further inroads in Europe soon.
Nio is building a second unit in Hefei that is slated to commence production in the third quarter of 2022.
Price Action: Nio shares closed 3.63% higher at $40.84 a share on Monday.
Photo: Courtesy of Nio
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