Investors are betting on EVs to drive the company’s business, with China’s smartphone market suffering from fierce competition and sluggish growth
Published Wed, Apr 23, 2025 · 12:43 PM
[HONG KONG/SINGAPORE] Xiaomi pushed back the debut of its first sport utility vehicle (SUV) following a fatal accident involving its marquee electric car, a blow to its ambitions to put pressure on Tesla and BYD.
The Chinese company will not start selling the YU7 electric SUV in June or July, its original target, and a new launch date has not been confirmed, according to sources familiar with the matter. It also scrapped an unveiling of the YU7 at this week’s Shanghai auto show, they said, asking not to be identified discussing internal planning.
The Beijing-based electronics giant also rescheduled its annual investor day to June from late April, a source familiar with the matter said.
The delay sets back Xiaomi’s US$10 billion electric vehicle (EV) project, which billionaire co-founder and chairman Lei Jun has described as his last startup endeavour. The company has released just one EV model and an expansion into SUVs would bolster its effort to go after more established rivals such as Tesla and BYD in the world’s largest car market.
Xiaomi representatives did not respond to requests for comment.
The police are investigating a Mar 29 accident in Anhui, eastern China, in which three women travelling in a Xiaomi SU7 sedan died after the car – which had the autopilot function turned on – crashed into concrete fencing and caught on fire on an expressway.
The high-profile case sparked online debate about the model’s assisted-driving, battery and safety technologies. The industry regulator has summoned at least a dozen automakers to set tighter rules around the capabilities of their autonomous driving systems.
Investors are betting on EVs to drive Xiaomi’s business, with China’s smartphone market suffering from fierce competition and sluggish growth. In March, Xiaomi hiked its 2025 delivery target to 350,000 EVs after posting its fastest revenue growth since 2021.
Shares of Xiaomi have declined more than 20 per cent since mid-March in Hong Kong as investors are growing concerned about the prospects of its EV efforts. BLOOMBERG
Share with us your feedback on BT’s products and services
