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,
The losses followed U.S. rival Tesla Inc.’s TSLA,
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,
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,
