BEIJING — Chinese electric car company NioOver the weekend, it said that the company is increasing prices and stopping production. latest Covid waveSupply chain issues are now more complex.

This company Hong Kong-listed sharesClose to 9% fell in Monday morning trades.

Nio announced Sunday it would raise the prices for its three SUVs — the ES8, ES6 and EC6 — by 10,000 yuan ($1,572), effective May 10. Prices of the ET7 and ET5 recently introduced sedans will not change.

CNBC translated the Chinese announcement by CEO William Li as saying that the prices of raw materials have “too high” and no downtrend is in sight.

“Originally [we]He said that we thought it was possible to handle it but it is now even more difficult. “We don’t have any other option but to raise the prices. We appreciate your understanding.

Nio announced that production was suspended on Saturday due to Covid restrictions placed in place over the past few weeks, which halted production at suppliers’ factories.

Li explained that the Covid’s impact on Changchun (and Hebei) has caused some parts of the auto industry to be out of stock since mid March. “The company was able to depend on the auto parts inventory up until last week for its production.”

He also stated that Covid infestations in Shanghai and Jiangsu have caused many suppliers to stop supplying parts.

Company began delivering its products. first sedan, the ET7, in late March.The second car, the ET5, is set to begin deliveries in September.

Nio is behind rivals in terms of monthly deliveries. Xpeng — whose cars sell in a lower price range — and Li Auto — whose only model on the market comes with a fuel tank for charging the battery. These three companies delivered more cars in March than FebruaryDespite supply chain difficulties

Nio was one of three startups that raised prices.

March saw Xpeng increase its prices for cars by 10,100 yuan (from 20,000 yuan) while Li Auto increased their prices by 11,800 yuan. Follow these moves TeslaOther electric vehicle companies throughout the country. raised prices in the last several weeks.

Covid-related disruptions are also affecting traditional automakers.

Volkswagen stated Thursday that the factories in Anting in Shanghai, the northern province Jilin’s outskirts, and Changchun in Changchun were still closed Friday.

Official figures Monday showed that China’s producer price index increased 1.1% in March, compared to one month prior and increased 8.3% from last year. Year-on-year, the increase was more than anticipated at 7.9%. forecast by a Reuters poll.

— CNBC’s Arjun Kharpal contributed to this report.