(Yicai Global) June 17 -- Geely Automobile Holdings has stopped accepting orders for its first Zeekr model, a premium electric vehicle released in April, because of the tight supply of chips and core components, according to the Chinese auto giant’s chief executive officer.

Chip supplies are proving to be a great challenge, An Conghui said in an interview with Yicai Global on June 15, adding that all the Zeekr vehicles that Geely can deliver this year have sold out. The automaker is also taking no more orders to ensure product quality, An said.

The Zeekr 001, a five-door shooting brake, uses more semiconductors than Geely’s other models and is equipped with the world’s latest chipsets, including the 7nm dual chip Mobileye EyeQ 5H.

Geely aims to capture a share of the luxury EV market with Zeekr. The Hangzhou-based company expected orders of between 7,000 and 8,000 for the Zeekr 001 this year, but the actual figure has far exceeded that, An said.

The automaker started taking orders on April 15 and will begin deliveries in October, according to information on Geely’s website. The Zeekr 001, which qualifies for a national subsidy on new energy vehicles, is priced between CNY281,000 (USD43,680) and CNY360,000 (USD55,960). Those already paid for average CNY335,000 each, according to An.

Like elsewhere, China has been hit by the global chip shortage since the end of last year, as the automobile and consumer electronics industries recover from the pandemic. China’s auto production could fall 15 percent to 20 percent this year, compared with 2019, due to the shortfall, according to Fang Yinliang, a senior partner at Roland Berger.

Editor: Dou Shicong, Futura Costaglione