Li Auto cuts Q3 delivery forecast due to chip supply shortage

Beijing (Gasgoo)- China’s new energy vehicle innovator Li Auto lowered its delivery outlook for the third quarter of this year due to the supply shortage of automotive chips.

2021 Li ONE; photo credit: Li Auto

The automaker said in a statement on Monday that the production of chips dedicated for its millimeter-wave radar supplier has been severely hampered because of the COVID-19 pandemic in Malaysia. Since the recovery of the supply has been slower than expected, Li Auto expects its quarterly deliveries to be about 24,500 vehicles from a previous 25,000-26,000 vehicles.

The automaker will continue to monitor the market conditions and work closely with its suppliers to minimize the impact of the chip shortage on its production.

In the first two months of the third quarter, Li Auto delivered 8,589 and 9,433 new vehicles respectively. After the adjustment in quarterly delivery outlook, its September deliveries are expected to be around 6,478 vehicles, unable to achieve the target of 10,000 vehicles per month it set earlier this year.

NIO also cut its quarterly delivery outlook due to the supply shortage at the beginning of this month. It expects its deliveries for the third quarter of this year to be around 22,500 to 23,500 vehicles. XPeng said its quarterly deliveries to be between 21,500 and 22,500 vehicles.