Nio Increases ES6 Production With Double Shifts After 5-Day Pause, New Report Reveals

Nio Inc (NYSE:NIO), the Chinese electric vehicle manufacturer, is reportedly taking swift measures to enhance the production of its ES6 model after a brief five-day hiatus. 

What Happened: Nio’s factory in Hefei, Anhui province, has seen a daily output of at least 300 ES6 vehicles, with certain workshops transitioning to double-shift production schedules, CnEVPost reported, citing a Chinese media publication.

The production spike aims to address a temporary production line halt at Nio’s F1 plant from July 29 to Aug. 2, primarily aimed at upgrading the manufacturing process.

These adjustments seem to be influencing the insurance registration numbers for Nio vehicles in China. In the first week of August (July 31 to Aug. 6), insurance registrations dropped by 20.37% compared to the previous week, according to the report. 

In the following week (Aug. 7 to Aug. 13), the decline steepened, with a 23.26% decrease. 

This dip reportedly correlates with Nio’s production line upgrades and changes in manufacturing schedules.

See Also: How to Buy Nio (NIO) Stock Right Now

Why It Matters: Despite the disruptions caused by production adjustments, Nio achieved a remarkable milestone by delivering a record-breaking 20,462 vehicles in July. 

Among these, the ES6 accounted for 11,118 units, contributing 54.33% to Nio’s monthly deliveries. Additionally, the ET5 Touring delivered 3,662 units, comprising 17.89% of Nio’s total deliveries for the month. 

The ES8 model, known as Nio’s flagship SUV, witnessed a significant increase in deliveries, with 1,917 units delivered in July – a 226.02% surge from June.

Nio is also actively investing in battery swap stations. The company is set to invest over RMB 4 billion ($550,000) in these facilities in 2023, with the goal of adding 1,000 battery swap stations to its network. As of Aug. 21, Nio had 1,673 battery swap stations in China, collectively providing more than 27 million battery swap services since the first station’s launch.

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