BEIJING – The biggest challenge for Nio right now is making sure supply chains are stable, CNBC CEO William Lee said.
The Chinese electric car manufacturer had to charge customers more than rising commodity prices.
When Covid’s controls in April prevented Nio’s from receiving parts from suppliers, the company had to temporarily suspend production. But the company said it was able to resume production in a few days.
However, as of Thursday, Lee was still describing the overall state of car production in China, which is in the process of recovering, while Shanghai and other parts of the country remain under Covid’s control.
As for sales, Lee said he expects consumer demand for electric vehicles to continue – even if the Chinese government cuts subsidies or other political support for the sector.
The Chinese electric car company Nio delivered more than 5,000 cars in April, despite Covid’s restrictions in some parts of China, though declined sharply from nearly 10,000 car deliveries in March.
Publishing House of the Future Publishing House of the Future Getty Images
Nio delivered more than 5,000 cars in April, despite Covid restrictions, though declined sharply from nearly 10,000 car deliveries in March.
Car sales in April fell 35.5% year-on-year, but new energy vehicles, which include battery-powered electric cars, rose 78.4%, according to the China Passenger Car Association.
Nio plans for Southeast Asia
Lee, who is also the founder and chairman of Nio, spoke in an interview with Emily Tan of CNBC ahead of the company’s secondary listing in Singapore.
On Friday, Nio conducted a secondary listing on the Singapore Stock Exchange as an entry – which differs from the initial public offering because it does not raise new capital and requires fewer documents.
Instead, the listing primarily allows investors to trade the company’s shares on the stock exchange, in addition to the main trading platform.
In early March, Nio also conducted a secondary listing in Hong Kong as an introduction. The first and main place of listing of the company remains the New York Stock Exchange.
The automotive chief did not specify why the company chose Singapore as the third platform for listing, but said that in this way Nio could attract more investors.
But Lee said Nio plans to export cars to Southeast Asia and soon open a research and development center in Singapore for artificial intelligence and autonomous control. He did not name specific dates.
So far, the company has focused most of its expansion abroad in Europe, primarily in Norway.
The startup’s main trading platform remains the NYSE, where the company held its initial public offering in 2018.
Nio shares listed in the U.S. rose about 150% after that IPO – a volatile three-plus year involving several quarterly declines and one full year in 2020, which increased more than 1,100%.
The Chinese electric car company Nio delivered more than 5,000 cars in April, despite Covid’s restrictions in some parts of China, though declined sharply from nearly 10,000 car deliveries in March.
Publishing House of the Future Publishing House of the Future Getty Images
