BEIJING, June 1 (TMTPOST)— The electric vehicle (EV) market in China is well on the track of recovery, a latest sign that the Covid-19 resurgence-related disruptions are ease, even in those hardest hit industries.

Source: Visual China

Li Auto Inc’s delivery in May increased 165.9% year-over-year (YoY) to 11,496 of vehicles, rising 175.9% from a month ago, when the company had a 24.7% YoY decrease in delivery. NIO Inc, another EV company that saw more than 20% decline in delivery in April, managed to gain 4.7% YoY increase in May, and its shipment rose 38.4% to 7,024 units, up from April’s 5,704 vehicles.

Xpeng Inc, the annual delivery champion among China’s homegrown emerging EV makers last year delivered 10,125 units in May, with a 78% YoY increase and a 12.47% month-over-month (MoM) increase. The performance is also much better than previous month, since the EV maker’s delivery rose 75% YoY and even fell 41.6% MoM in April. HOZON Auto’s brand Nezha, the rare bright spot in April, maintained robust growth as it shipped 11,009 vehicles, jumping 144% YoY and 21.16% MoM.

Li Auto last month blamed for the COVID-19 pandemic as it continues to cause severe industry-wide disruptions in supply chain, logistics and production since late March. In a statement released on Wednesday, the company noted its parts suppliers in the Yangtze Delta region have gradually resumed production, though not fully recovered yet. Our Changzhou manufacturing base has not yet reverted to its normal production level, resulting in delayed deliveries for some of our users, Yanan Shen, the co-founder and president commented. Shen said Li Auto continued to encounter challenges resulted from the parts supply shortage. He reiterated his company was working with supply chain partners to restore production capacity and seeking to meet all pandemic prevention requirements.

Xpeng also pointed out the progress in the Covid restrictions ease. In particular, it resumed double-shift production at its Zhaoqing plant beginning in mid-May as supply chains and key manufacturing areas in China started to gradually recover.

NIO admitted its gradual recovery of its production from the COVID outbreaks in certain regions in China, but cautioned the delivery was still somewhat constrained by the preventive measures. It plans to ramp up the production capacity through cooperation with supply chain partners and to accelerate delivery recovery from June.

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