Automotive Author: Xiangqun Ji Jun 23, 2022 03:35 PM (GMT+8)

The supply chain shortages are impacting on China’s vehicle delivery

XPeng

Xpeng (NYSE: XPEV), a new energy vehicle (NEV) manufacturer, just announced that cancelling the orders of Xpeng P5 model in Denmark, Netherlands, Sweden, and Norway due to the affection of supply chain shortages. 

In March 2022, Xpeng started to accept pre-orders of P5 model, and allows its clients to pay deposit in advanced. Also, to test popularity of the P5 or P7 model in Europe, the company opened Xpeng store in Sweden and Denmark to serve local clients and provide P5 and P7 driving experience services.

According to a statement from XPeng, it says “the automotive industry has been suffered from supply chain problem for months, a number of auto makers have to readjust the delivery date and pricing of vehicles to respond challenges and uncertainties.” 

Moreover, based on Xpeng’s evaluation, the company could not deliver P5 vehicles as scheduled to customers who paid deposit, and the company encourage clients who ordered P5 model instead to buy P7.

Shanghai has been placed under a lockdown for over one month, putting significant pressure on EV makers to maintain production amid already severe supply chain shortages. A recent trend of China’s auto maker is to decentralize supply chain layout enabled it to withstand the impact of Covid-19.