Tesla’s Chinese rival Nio suspends production on chip shortage – News 24-7 Live News 24-7 Live
Tesla’s Chinese rival Nio suspends production on chip shortage

Tesla’s Chinese rival Nio suspends production on chip shortage

Nio, one the main challengers to Tesla, which dominates the EV market in China, said it would halt production for five working days at its Hefei plant from next week and cut its first-quarter delivery forecast by as much as 1,000 vehicles.Chinese electric vehicle maker Nio on Friday became the latest automaker to temporarily suspend production because of a global semiconductor chip shortage that has shut down plants and resulted in major losses for the sector.

Top automakers such as Ford, Honda, GM and Volkswagen were caught off guard by the shortage even as auto demand picked up during the Covid-19 pandemic, forcing many of them to hold back production.The chip scarcity is also a result of an increased demand from the consumer electronics industry as people worked from home and played more video games during the health crisis.

News Source: Hindustan times

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