September 25, 2023

Employees will perform checks on an inspection line during a media tour of Nio Inc.’s manufacturing facility in Hefei, Anhui Province, China on Friday, December 4, 2020.

Qilai Shen | Bloomberg | Getty Images

BEIJING – Chinese electric car startup Nio said Friday it was closing a factory for five days because of the global shortage of semiconductors.

The production stop from March 29th will reduce Nio’s deliveries by at least 500 vehicles in the first quarter, the company said.

This puts the expected deliveries for the first three months of the year at 19,500, compared to the previously announced forecast of 20,000 to 20,500.

Despite the cut, Nio is on track to deliver more cars than rivals Xpeng and Li Auto by 2021.

Global automakers have announced production stops due to a semiconductor shortage. The highly specialized chip supply chain has suffered from the effects of the coronavirus pandemic and the China-US trade tensions that began under the Trump administration.