Chinese auto makers plunge as COVID surge prompts delivery cuts

by user

Shares of Chinese auto makers plunged as growing COVID-19 outbreaks across China halted vehicle production, triggering delivery cuts and sparking worries of a sales decline in the world’s biggest car market.

Electric-vehicle makers XPeng Inc.
Li Auto Inc.

and NIO Inc.

dropped by as much as 9.0%, 8.4% and 11%, respectively, in Hong Kong. Shenzhen-listed BYD Co.

shed as much as 3.5% in Wednesday morning trading.

The losses followed U.S. rival Tesla Inc.’s

11% decline overnight after the EV maker extended the production suspension at its Shanghai plant due to surging COVID-19 infections.

NIO on Tuesday cut its fourth-quarter delivery estimate, citing pandemic-related production challenges and continued supply-chain constraints.

“As most Chinese citizens have been affected by Covid before Jan re-opening, we recognize major mid-high-level new energy vehicle brands’ weekly delivery were pulled back,” Citi analysts said in a note.

COVID-19 infections have surged in China in recent weeks after Beijing pivoted from its zero-COVID policy, taking down workers at car manufacturers and their suppliers.

Tesla supplier Contemporary Amperex Technology Co.
the world’s largest EV battery maker, dropped 3.9% in China.

NIO was recently 9.1% lower at 80.35 Hong Kong dollars (US$10.30), XPeng declined 8.1% to HK$38.40 and BYD dropped 2.5% to 255.68 yuan.

Hong Kong’s benchmark Hang Seng Index

rebounded and was last 2.1% higher at 20001.05.

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