Home News Nio electric vehicles sales took a hit as it scrambled to handle...

Nio electric vehicles sales took a hit as it scrambled to handle battery recall

84
0

Nio delivered just 837 electric cars in July, a nearly 38% drop from the previous month that was mostly caused by a voluntary recall of its high-performance ES8 SUV.

The Chines automotive startup issued a voluntary recall in June of almost 5,000 ES8 SUVs following a streak of battery fires in China and another investigation showed a vulnerability in the design of the battery pack that might cause a brief circuit.  The recall affected a few of these ES8 cars sold since they went on sale in June 2018.

Nio managed to complete its recall for its 4,803 ES8s by prioritizing battery manufacturing ability for this effort, which considerably influenced our production and delivery results, NIO founder, chairman and CEO William Li said Monday in a statement.

“On the positive side, we completed the ES8 battery recall in approximately half the time in contrast to our original timeline,” Li explained, adding that the consumer confidence is coming. “Looking ahead, with battery power allocation back to normal, we’ll accelerate deliveries and compensate for the delivery reduction affected by the recall. ”

Nio expects August for a “much more powerful month” using a target to provide between 2,000 and 2,500 vehicles, according to Li. This ’s a considerable leap from what Nio has managed to attain in the previous several months, despite the extra battery recall issue.

Nio delivered 1,340 vehicles in June, 1,089 in May and 1,124 at April. At July 31, 2019, aggregate deliveries of the Company’s ES8 and ES6 attained 19,727 vehicles, of which 8,379 vehicles were delivered in 2019.

Deliveries of the ES8 originally surpassed expectations, however they have since slowed in 2019. Currently, Nio will have to double deliveries in August to meet its target.

Other facets, and ones that might appear more chronic, also affected delivery amounts in July. Li noted that anticipated reductions in EV subsidies and macroeconomic conditions in China such as a decline in passenger vehicle sales and the U.S.-China trade conflict as other variables.

The souring economic picture in China has already prompted Nio to cut its workforce by only 4.5%, change its automobile production strategies and cut back R&D spending. Nio reported May a reduction of 390.9 million from the first quarter by a slowdown in sales that was primarily driven by the EV subsidy decrease in China and macroeconomic tendencies in the nation that were affected by the U.S.-China commerce war, Li stated at the time.


Buy Tickets for every event – Sports, Concerts, Festivals and more buy tickets