Nio CEO expects China's automotive supply chain to fully recover by end of March

China abandoned its zero-COVID policy in December, leading to a surge in infections that has impacted the automotive industry. However, the head of Nio (NYSE: NIO) expects the effects on the industry to lessen in the coming months.

William Li, the founder, chairman, and CEO of Nio, said that he expects the supply chain for the automotive industry to stabilize by March or April of next year, taking into account the upcoming Lunar New Year.

The impact of China's Covid restrictions will be gone soon, Chinese EV maker Nio CEO William Li says, adding the auto industry will return to normal in the near future.

"I believe the overall supply chain should be stabilized by next March or April." https://t.co/UlyRZBJ8cd pic.twitter.com/x4DNlzRGBu

— Bloomberg (@business) January 3, 2023

According to Li, the reopening process in China will negatively affect the region where Nio is headquartered, as well as the company's supply chain partners. However, Li stated that the negative effects will be temporary and that the supply chain and car industry in China will return to normal in the very near future.

Although Nio set a record high for car deliveries in December with 15,815, the numbers still fell short of expectations.

In a group interview the day after Nio Day, Li mentioned that the market for new energy vehicles (NEVs) in China would be challenging in the first half of 2023 due to the discontinuation of purchase subsidies. Li also noted that it would take some time for consumer trust to recover in China, as the country is putting the COVID measures behind it.

Via