China extends EV tax cuts.Lee Automobile shares drop after lowering delivery forecasts

Li Auto warned that “supply chain constraints” mean the company will deliver fewer cars than expected in the third quarter. Meanwhile, China has extended tax exemptions for new energy vehicles until the end of 2023 in an attempt to spur the growth of electric vehicles.

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shares of lee auto Prices fell in US pre-market trading on Monday after the Chinese electric car maker cut its third-quarter delivery guidance.

Meanwhile, rival electric car companies Nio When Xpeng It surged as Beijing announced an extension of tax breaks on electric vehicle purchases.

Li Auto said it plans to deliver 25,500 vehicles in the third quarter, up from a previous forecast of 27,000 to 29,000. Li Auto shares were down about 2% in pre-market trading.

“Although this revision is a direct result of supply chain constraints, potential demand for our vehicles remains strong,” Li said in a statement. “We will continue to work closely with our supply chain partners to resolve bottlenecks and accelerate production.”

Chinese electric car makers face a host of headwinds stemming from the resurgence of Covid-19 and Beijing’s continued stringent lockdown policy to contain the virus.Supply has been cut off at factories across China due to the new coronavirus zero policy It puts pressure on the economy and private consumption.

To sustain the growth of electric vehicles, China’s Ministry of Industry and Information Technology and the Ministry of Finance have extended the exemption period for new energy vehicle purchase tax until December 31, 2023. New energy vehicles include fully electric vehicles and plugs.・Hybrid car.

Beijing has extended purchase tax exemptions several times since the policy was first introduced in 2014 to stimulate demand. It helps me to

Read more about electric vehicles on CNBC Pro

Xpeng shares were up more than 4% in pre-market trading, while Nio was up around 1.6%.

Despite the market facing challenges, Chinese electric vehicle start-ups continue to launch new products this year to boost growth.

last week, Xpeng Launches G9 Sport Utility Vehicle, is the most expensive car ever and has ventured into the high end of the market. Li Auto unveiled a new SUV called the Li L8 on Friday, with deliveries expected to start in November. China extends EV tax cuts.Lee Automobile shares drop after lowering delivery forecasts

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