Xiaomi has postponed the launch of its first electric SUV, the YU7, following a fatal accident involving its flagship EV—a setback in its high-stakes bid to challenge Tesla and BYD, according to Bloomberg.
Originally set to debut in June or July, the YU7's release has been quietly shelved with no new date confirmed, according to sources familiar with the matter. The company also canceled plans to unveil the SUV at this week’s Shanghai auto show and pushed its investor day to June from late April.
The delay complicates Xiaomi’s $10 billion electric vehicle gamble, which Chairman Lei Jun has called his final startup venture. With just one EV on the road so far, breaking into the SUV segment was seen as a critical step in scaling its presence in China’s fiercely competitive auto market.
Xiaomi declined to comment, though a Weibo post after Bloomberg’s report insisted the original June-July timeline “remains unchanged.”
Bloomberg writes this morning that the crash has triggered a police investigation and intensified scrutiny of the company’s EV technology. Three women died in the high-speed accident.
The incident sparked widespread debate over Xiaomi’s assisted-driving features, battery safety, and overall vehicle reliability. In response, Chinese regulators have summoned over a dozen automakers to tighten rules around autonomous-driving systems.
“The problem with the way self-driving features have been sold is it’s caused people to think that they can be less attentive to the way the car is actually performing,” said Bill Russo, CEO of Automobility Ltd., at the Shanghai auto show. “You still need to monitor the car. I think that’s what we’re going to hear more of — regulators trying to step in to make sure we’re not calling it autopilot or full self-driving.”
Despite EVs being central to Xiaomi’s future—especially as its smartphone business faces headwinds—the company’s stock has slid over 20% since mid-March. This comes even after Xiaomi raised its 2025 EV delivery target to 350,000 vehicles following its fastest revenue growth since 2021.
