Chinese Auto Makers Plunge as Covid-19 Surge Prompts Delivery Cuts

By Bingyan Wang

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.

Write to Bingyan Wang at [e-mail]

(END) Dow Jones Newswires

December 27, 2022 23:21 ET (04:21 GMT)

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