Chinese Electric Vehicle Manufacturer Nio Lowers Q1 Delivery Projections Due to Weak Demand

Chinese Electric Vehicle Manufacturer Nio Lowers Q1 Delivery Projections Due to Weak Demand

BollywoodFever, March 27: Chinese electric-vehicle manufacturer Nio (9866.HK) announced a reduction in its delivery outlook for the first quarter on Wednesday, amid challenges of waning demand and an ongoing price competition in China. 

The reduction led to a near 4% drop in the company’s U.S.-listed shares during premarket trading.

Chinese Electric Vehicle Manufacturer Nio Lowers Q1 Delivery Projections Due to Weak Demand

In China, which is the largest automotive market globally, Nio has been facing declining interest in electric vehicles as fierce competition forces down prices and economic downturn prompts consumers to cut back on expenditure. 

This scenario has been exacerbated by a price reduction strategy initiated by Tesla (TSLA.O) last year, aimed at addressing the drop in demand but which has, in turn, impacted the profit margins of local electric vehicle makers.

As a result, Chinese electric vehicle manufacturers like Xpeng (9868.HK) and BYD (002594.SZ) are looking towards international markets, including Europe, where they anticipate the ability to command higher prices than in the increasingly competitive Chinese market. 

A report by Reuters in October indicated that Nio was exploring the establishment of a dealer network in Europe to accelerate its sales growth there.

However, European authorities are planning investigations into Chinese automakers to determine if their lower-priced electric vehicles are unfairly benefiting from state subsidies.

Nio now anticipates delivering approximately 30,000 vehicles in the first quarter of 2024, a downward revision from its initial projection of 31,000 to 33,000 vehicles. This follows a delivery count of 31,041 vehicles in the same quarter of the previous year.

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Pooja Chauhan
Pooja Chauhan

Pooja Chauhan: Your Source for Entertainment and Box Office News

Pooja Chauhan is a passionate writer and dedicated journalist specializing in delivering the latest updates and insights from the world of entertainment and box office. With a keen eye for detail and a deep love for cinema, Pooja brings her readers accurate and engaging coverage of all things related to movies, celebrities, and the dynamic world of showbiz. Her commitment to keeping her audience well-informed and entertained makes her a valuable voice in the realm of entertainment journalism. When she's not busy uncovering the latest scoops, Pooja enjoys exploring classic films and indulging in creative writing."
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