(Reuters) – China’s electrical car start-ups reported stronger gross sales for Might and forecast continued positive aspects for June as provide chains and output start to get well from the disruption of COVID-19 lockdowns in Shanghai and different cities.

Li Auto Inc reported a Might gross sales achieve of 166% from a yr earlier to 11,496 automobiles on Wednesday. Xpeng (NYSE:) Inc posted a achieve of 78% with 10,125 deliveries. Nio (NYSE:) Inc delivered 7,024 EVs, up 5% from a yr earlier.

All three firms cautioned that output had not but totally recovered, constrained by elements provide points. Shanghai, a key manufacturing hub, ended its two month lockdown for many residents on Wednesday.

Trade-wide gross sales knowledge for Might, together with for the EV leaders in China, BYD and Tesla (NASDAQ:), are anticipated by subsequent week.

China has introduced a variety of measures to help auto gross sales and the sputtering financial system, together with a halving of the tax on purchases of small-engine vehicles with sticker costs of as much as about $45,000. In a report issued Wednesday, Fitch mentioned it expects gross sales for the world’s largest auto market will climb 3.9% this yr after 3.8% progress in 2021.

However Fitch additionally warned of dangers: “The native market faces important challenges, starting from a restricted provide of latest automobiles, elevated unemployment and weak spot within the native development and actual property sectors.”

Li Auto cautioned that shipments from suppliers round Shanghai remained disrupted. “We proceed to come across challenges attributable to elements provide shortages,” Li Auto President Yanan Shen mentioned in an announcement.

Xpeng mentioned it had restarted two shifts at its plant in southern China and was working to speed up deliveries. Nio mentioned it expects to extend output in June after current strikes to finish lockdown restrictions.