Dow Jones Newswires: Chinese auto makers plunge as COVID surge prompts delivery cuts

by | Dec 27, 2022 | Stock Market

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.

Article Attribution | Read More at Article Source

Share This