Xiaomi SU7 electric car: Six months ago, Xiaomi’s EV Su7 would be opposed by customers after a fatal crash. Orders fell 55% in April; CEO Lei Jun appears ignorant

Xiaomi’s new electric car SU7 is now facing a sharp drop in new orders across China. SU7 was once known as the rising star in the electric vehicle market and saw a sharp change in momentum. Sales are now declining as consumer backlash, safety issues and reputation crisis threatened the company’s position in the electric car race.

Why are Xiaomi SU7 electric car orders so fast?

According to Deutsche Bank analysts, reaching its peak in March and hitting a record 23,000 orders in a week, new Su7 orders fell 55% in April. In the first two weeks of May, only 13,500 orders were recorded – a significant drop compared to earlier months. The transition is now under investigation after a fatal accident involving SU7. Although the cause has not been confirmed, the incident has triggered a fierce public debate on the safety of Xiaomi’s smart driving capabilities.
To cope with public response, Chinese regulators have carefully examined the rules on how automakers promote these smart features. Although Xiaomi has been publicly silent and has not responded to a request for comment from Reuters, the damage to its reputation has been seen in the numbers.

What caused a strong backlash from Xiaomi’s carbon fiber hood design?

Further controversy broke out when Su7 Ultra buyers discovered the misleading design feature. The company offers a double-ventilated fiber hood for ¥42,000 ($5,826). But nearly 400 owners complained that the hood had no actual air duct, contradicting the claims made earlier by Xiaomi and CEO Lei Jun.

Xiaomi apologized, calling it “unclear communication.” However, the Shanghai-based news media article reports the issue as a “credit crisis,” which not only affects Xiaomi, but also reflects a broader issue of how China’s electric vehicle industry handles consumer trust.

Does Xiaomi use artificial scarcity in SU7 delivery?

Some buyers have begun to question the company’s delivery transparency. Many customers say they received vehicles much earlier than the app’s estimates, raising suspicion that Xiaomi could artificially inflate waiting times to boost hype and demand. Delivery estimates for Xiaomi’s official apps currently range from 26 weeks to 11 months, adding to confusion. A Chinese blogger known as Zu, and SU7 owner, even set up an app to crowdsource actual delivery schedules to keep the company responsible.

Can Xiaomi’s smartphone strategy work in the automotive industry?

Xiaomi has achieved success in the smartphone world through Flash sales, limited stocks and aggressive marketing. But cars are not smartphones. Vehicles are a major investment, and consumers expect long-term support, accurate specifications and clear communication.

Consulting firm Landroads explains the difference: “Consumers will have higher demands on the brand’s ability to fulfill its commitment and its long-term credibility.” The shift in consumer expectations may catch up with Xiaomi as it risked to go beyond gadgets and enter the high-risk automotive market.

How does Lei Jun handle the growing pressure?

Xiaomi CEO Lei Jun is a popular tech figure in China with more than 26 million followers on Weibo. He is known for his ability to connect with online consumers, but even he admits it was one of the most difficult times of his career.

In a public post on Saturday, Ray admitted to having conducted in-depth tests on him over the past month. However, Lei and his team are now facing the pressing challenge of rebuilding trust in the SU7 brand due to security issues, misleading product descriptions, and piled up delivery controversy.

What is Xiaomi’s electric vehicle business?

The SU7 has a strong start, and even Tesla’s Model 3 has performed well in terms of monthly sales in China in December 2024. But recent events have cast a shadow on this momentum.

As the world’s largest electric vehicle market becomes more competitive and regulated, Xiaomi will need to address safety issues, product transparency and consumer trust, or risk watching its electric dream.

FAQ:

Question 1: Why is China’s Xiaomi SU7 electric vehicle orders falling?
Due to fatal collapse, safety fears and opposition to misleading product features.

Q2: What is the controversy about the carbon fiber hood of Xiaomi SU7?
Buyers claim it lacks promised ventilation holes, raising issues of refund requirements and trust.