An Xpeng P7 electric car can be seen during the 18th Guangzhou International Automobile Exhibition at the China Import and Export Fair Complex on November 20, 2020 in Guangzhou, Guangdong Province, China.
VCG | Visual China Group | Getty Images
GUANGZHOU, China – Chinese electric car manufacturer Nio saw shipments decline in May as global chip scarcity affected business.
Meanwhile rival Xpeng engines saw vehicle deliveries accelerate in May as the same semiconductor shortage was overcome.
Xpeng was up roughly 5.5% in pre-trading in the US, while Nio was up 2.8% at 5:03 a.m. ET.
Global automakers were too Dealing with a semiconductor shortage what affected their business.
Nio delivered 6,711 vehicles in May, 95.3% compared to the previous year. However, that was 5% less than in April.
“In May, the company’s vehicle shipments were impacted for several days due to volatility in semiconductor supply and certain logistical adjustments,” Nio said in a statement.
“Based on the current production and delivery schedule, the company will be able to accelerate delivery in June to make up for the May delays,” the statement said in the statement, adding that it reiterates its delivery forecast of 21,000-22,000 vehicles in the second quarter of the year.
As of May 31, the cumulative deliveries of the three Nio models ES8, ES6 and EC6 reached 109,514 units.
The Chinese electric car manufacturer delivered 1,889 of its G3 SUV in May.
Meanwhile, China had a five-day work vacation in May.
“May is actually a very challenging month for the industry because obviously we mentioned that there was a supply chain constraint with this chip shortage. There’s also the bank holidays, the May bank holidays affected delivery for the first half … of the month. ”Brian Gu, president of Xpeng Motors, told CNBC in an interview that aired Tuesday.
Despite the challenges, May saw a very robust surge for the company, he said.
“Also, I think the most exciting re-growth of our P7 product is the most exciting,” said Gu. “We are actually seeing much stronger growth of this in our revenue mix, which gives us confidence that we are really meeting our quarterly guidance and numbers for this shipment … for the second half of the year.”