Chinese EV start-up Nio makes contingency plans to avoid production loss as Beijing prepares to exit zero-Covid strategy

Nio will increase the inventory of components, monitor workers’ health and adjust its workforce to maintain smooth operations of its Hefei plant, president Qin says

The easing of pandemic curbs last week paves the way for the world’s second-biggest economy to exit its three-year zero-Covid strategy

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An employee works on the production line of Nio electric vehicles at the JAC-NIO plant in Hefei, Anhui province. Photo: China Daily via Reuters

Published: 10:20pm, 12 Dec 2022Updated: 12:02am, 13 Dec 2022

Chinese smart electric vehicle (EV) start-up Nio, whose manufacturing was recently disrupted by supply-chain constraints for the fifth time this year, is making contingency plans to avoid further stoppages amid a potential flare-up in coronavirus cases as China shifts from zero-Covid to living with the virus.

Nio will increase the inventory of key components, closely monitor workers’ health and adjust its workforce to maintain smooth operations of its assembly line in Hefei, eastern Anhui province, president Qin Lihong said in an online briefing on Monday.

“Workers testing positive will be required to withdraw from the production facilities,” he said. “That will lead to a shrinking labour force, but we need to keep our workers healthy and comfortable.”

He was confident that Nio would utilise 80 to 90 per cent of its capacity in the coming months.

Nio president Qin Lihong said the carmaker has put contingency plans in place to avoid disruption to its production. Photo: Handout

Last Wednesday, China’s cabinet published a 10-point guideline pledging to relax pandemic curbs, such as dropping mass testing, health codes and centralised quarantine requirements for most cases.

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