Chinese EV maker Nio says it’s gradually resuming production after Covid halt

BEIJING — Chinese electric car company Nio said Thursday it is gradually resuming production at a facility several hours’ drive west of Shanghai, after temporarily halting operations due to the Covid outbreak.

Nio said Saturday it had suspended production after Covid-related restrictions in Changchun, in north China, and Hebei, near Beijing, halted production at suppliers’ factories. The company subsequently said it would raise prices for its SUVs in May due to high raw materials prices.

Now, the supply chain issues have recovered slightly, the company said, and the Hefei production base is gradually resuming production. It noted that future production plans still depend on the recovery of its supply chain.

Mainland China’s worst Covid outbreak in the last several weeks has prompted travel restrictions and lockdowns from the eastern metropolis of Shanghai to the northern province of Jilin, where the capital Changchun is home to auto factories.

German automaker Volkswagen said Thursday its factories in Changchun and Shanghai remained closed.