According to a report from Reuters, orders for the electric sedan SU7 under Xiaomi have seen a significant decline recently. Analysts pointed out that although the model has been selling well since its launch, rising safety incidents and product controversies have led to increasing dissatisfaction among consumers, posing a threat to its future sales prospects.
The SU7 debuted in March 2023, quickly becoming a market focus with its sporty design and smart driving technology. However, a recent accident last month involving the SU7 resulted in several deaths, sparking questions about the safety of its smart driving features.
While the investigation into the accident is ongoing, it has already generated widespread discussions on social media.
Analysts from Deutsche Bank noted that new orders for the SU7 decreased by 55% in April compared to March, and this declining trend has continued into May, with only 13,500 orders received in the first two weeks of this month. In contrast, during the second week of March, there were as many as 23,000 orders, setting a historic high.
Xiaomi has also been in the spotlight recently due to marketing controversies. Last week, the company issued an apology to consumers regarding the design issue of the carbon fiber engine hood of the SU7 Ultra, acknowledging “poor communication.” According to the official Shanghai media “The Paper,” around 400 car owners demanded a refund of 42,000 Chinese Yuan (approximately $5,826) for the optional equipment fee because the engine hood did not have the dual vent design as claimed by Xiaomi and CEO Lei Jun.
“The Paper” commented, “This crisis not only exposes the integrity crisis of Xiaomi’s SU7 single product but also reflects some distortions in the values of the current new energy vehicle industry.”
Xiaomi’s founder Lei Jun stated that this is the “most difficult” period since the establishment of Xiaomi ten years ago.
In addition to product controversies, some buyers and analysts have also raised doubts about Xiaomi’s estimated delivery times. They have observed that actual delivery often happens much earlier than expected, leading to suspicions that Xiaomi may be deliberately creating an artificial scarcity image as part of their marketing strategy.
The SU7 is Xiaomi’s first electric car, which has been popular among young users on Chinese social media platforms since its launch last year. However, in March of this year, a SU7 vehicle crashed into a cement guardrail on a highway in Tongling, Anhui, causing a fire, and tragically resulting in the deaths of three university students.