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. 9868, -9.45%, Li Auto Inc. 2015, -6.60% and NIO Inc. 9866, -10.41% dropped by as much as 9.0%, 8.4% and 11%, respectively, in Hong Kong. Shenzhen-listed BYD Co. 002594, -3.01% shed as much as 3.5% in Wednesday morning trading.
The losses followed U.S. rival Tesla Inc.’s TSLA, -11.41% 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. 300750, -2.49%, 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 HSI, +1.31% rebounded and was last 2.1% higher at 20001.05.
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