Shanghai (ZXZC)- Chinese EV startup NIO announced on March 26 that it decided to suspend the vehicle production in the Hefei-based JAC-NIO manufacturing plant for five workings days from March 29, 2021 because of the shortage of semiconductors.

As the overall supply constraint of semiconductors has impacted the company's production volume in March, NIO has lowered the expectation on its first-quarter deliveries to roughly 19,500 vehicles from the previously released outlook of 20,000 to 20,500 vehicles.

William Bin Li, founder, chairman and CEO of NIO, said at a quarterly earnings call that for the second quarter of this year, the company will still have some risks regarding the chip supply. Starting from last year, NIO has already kicked off the communication and collaboration with its supply chain partners to secure the sourcing of chips.

The global chip crunch is continuing to pummel the auto industry with Honda and General Motors among the latest major companies to warn of sustained disruption.

Honda said on March 23 it will extend production suspension at some North American plants into the week of March 29 due to various supply chain issues. General Motors said its assembly plant in Wentzville, Missouri would be shut during the weeks beginning March 29 and April 5. It will prolong downtime at its plant in Lansing, Michigan, which has been idled since March 15, by two weeks.