- Deliveries were weaker in 2Q22.As expected, vehicle deliveries slowed down in 2Q22 as the EV manufacturers faced challenges from COVID-19 lockdowns in China, extreme weather conditions, as well as supply chain uncertainties. Li Auto saw the sharpest decline in EV deliveries to 28,687 units (-9.6% QoQ) in 2Q22 as its factories were impacted by restrictions in Shanghai. On the other hand, NIO saw a more modest decline to 25,059 units in 2Q22 from 25,768 units in 1Q22, representing a 2.8% QoQ decline.
- Margins also came down in 2Q22. With lower deliveries, the margins of Chinese EV manufacturers declined in 2Q22. This was most noticeable for NIO, which saw a decline in vehicle gross margin to 13.0% in 2Q22 from 14.6% in 1Q22. NIO’s management attributed the margin decline to higher
Q: China Electric Vehicle (EV) manufacturers have reported their earnings for the second quarter of 2022. What are some of the notable highlights that investors should focus on?