China’s Nio said this morning it is forecasting fewer deliveries of its electric vehicles this quarter due to anti-pandemic restrictions, which are weighing on manufacturing and sales.

Nio, a Chinese smart electric vehicle manufacturer, expects deliveries to drop by as much as 11 percent in the second quarter of this year as a result of anti-pandemic restrictions across the mainland.

The company stated on Thursday that deliveries between April and June would be between 23,000 and 25,000 units, which is a considerable drop of 3 to 11 percent from the previous quarter.

Nio is the second big Chinese electric car maker to foresee a drop in quarterly sales, according to the South China Morning Post, which initially reported the story.

Chen Jinzhu, CEO of consultancy Shanghai Mingliang Auto Service, said challenges in the second quarter were driven by lockdowns across China due to another spike in COVID-19 cases. “The second quarter is proving to be a difficult time for Chinese EV companies as both their production and sales are affected by lockdowns in the major vehicle manufacturing base like Shanghai and northwestern Jilin province,” Jinzhu said. “The good news is that their arch-rival Tesla was also severely affected by the virus control and prevention measures.”

Shanghai and Jilin, a crucial car-making center in China, have been in at least partial lockdown for the last three months in order to limit the spread of a recent wave of COVID-19 cases. The strict regulations put a burden on automotive supply networks and discouraged EV enthusiasts from purchasing vehicles.

During a citywide lockdown that lasted from April 1 to May 31, according to Cui Dongshu, general secretary of the China Passenger Automobile Association (CPCA), more than 20,000 car component makers in Shanghai and neighboring provinces were compelled to either cease production or cut capacity.

The automotive supply chain was jammed by the lockdowns in Shanghai and Jilin provinces in mid-April. Nio briefly halted production at its factory in Hefei, East China’s Anhui province, for five days.

In the mainland Chinese market, Nio, Xpeng, and Li Auto are considered Chinese competitors to Tesla, the unquestioned worldwide EV leader.

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Nio forecasts Q2 delivery slump as pandemic restrictions subdue manufacturing