Recently, a shocking traffic accident occurred in Tongling City, Anhui Province. A Xiaomi SU7 electric car suddenly lost control while driving, crashed into the roadside guardrail, quickly caught fire, and tragically resulted in the death of three female university students who were unable to escape in time. Following the accident, Xiaomi Group’s market value plummeted by over 120 billion Hong Kong dollars within two days, once again bringing China’s electric vehicle safety issues into the spotlight.
According to information from the Anhui High-Speed Travel Service website, on March 29 at 23:12, a small car with license plate number AAV1226 collided with the central guardrail on the G0321 Desheng Expressway section in Chizhou, causing a fire, leading to road closures in the Qimen to Songyang direction.
After the incident, the victims’ families voiced their concerns online, questioning why the Xiaomi SU7 ignited after the collision and the reason for the door being locked. They expressed disappointment that Xiaomi had not proactively contacted them since the incident and even failed to offer condolences. Furthermore, the families raised doubts about the technical performance of Xiaomi’s vehicles.
Following the backlash, Xiaomi issued a statement on its official Weibo account expressing deep regret over the accident and stating that a special team had been set up to cooperate with the police investigation.
According to Xiaomi’s data, the vehicle was in the “Navigate on Autopilot” (NOA) intelligent driving assistance mode at the time of the accident. However, Xiaomi has yet to provide a clear explanation for the door locking and fire reasons, only mentioning that the standard version of SU7’s intelligent driving system does not have the highest-level obstacle avoidance capability.
On April 1, Xiaomi Car responded that the SU7 standard version features two sub-functions, Collision Warning (FCW) and Emergency Braking (AEB), targeting only vehicles, pedestrians, and motorcycles for the forward collision prevention system.
Industry insiders speculate that the accident may have been caused by the vehicle’s delayed identification of obstacles in front, leading to the AEB not triggering in time, highlighting limitations in perception systems.
Analysis suggests that the phenomenon of electric vehicle batteries catching fire after collisions is often related to inadequate thermal runaway management, a common shortcoming among some Chinese electric vehicle manufacturers.
The incident’s exposure resulted in a significant drop in Xiaomi Group’s stock price on the Hong Kong Stock Exchange. On April 1, the stock price plummeted by 5.5%, losing nearly 70 billion Hong Kong dollars by closing at 46.5 Hong Kong dollars.
On April 2, Xiaomi Group’s stock price fluctuated significantly throughout the day, with a 4.19% decrease at the closing price of 44.55 Hong Kong dollars. Xiaomi Group’s total market value evaporated by over 120 billion Hong Kong dollars within two days.
Investor confidence in Xiaomi’s electric vehicle business has shaken, casting a shadow over its car manufacturing plan. Since the launch of SU7 in March 2024, over 200,000 units have been delivered, but accidents persist.
A Chinese car owner had previously reported shaft breakage after driving over a bumpy road in February, sparking attention. Xiaomi Automotive then clarified the situation, leading to the social media account of the car owner being suspended.
In recent years, the Chinese Communist authorities have vigorously promoted the electric vehicle industry, incentivizing domestic car companies through subsidies and policy support. However, compared to leading companies like Tesla, emerging Chinese firms like Xiaomi face numerous challenges in technology accumulation and quality control, leading to frequent accidents from fires to brake failures.
Social media users commented that domestic electric cars prioritize price over safety, cautioning consumers that the affordability could cost lives. Some sarcastically remarked that vehicles subsidized by the government ultimately burn consumers.
The ongoing accidents have prompted discussions on regulating the Chinese automotive industry. Yet, the authorities primarily target online opinions, with previous directives from the Cyberspace Administration prohibiting the “smearing or defaming of corporate and entrepreneur images.”
With strong government backing, car companies like Xiaomi, BYD, GAC Group, Great Wall Motors, among others, claim to face “online violence.” They either offer rewards for relevant information or directly sue related online media or automotive bloggers, with court rulings often favoring the automakers.