Xiaomi’s push into the electric vehicle (EV) sector has hit a major speed bump. The Chinese electronics giant, which is more widely known for its lineup of smartphones, has now pushed back the launch of its highly-anticipated mid-size YU7 electric sport utility vehicle (SUV), which was originally slated for sometime later this year, in the wake of an accident involving its maiden EV, the SU7 sedan.
Xiaomi has yet to issue a detailed public statement on the investigation into the accident or the specific technical aspects of the vehicle’s autopilot system. Prior to the recent developments, the YU7 SUV had been touted as a potential strong rival to Tesla’s popular Model Y in China, and many expected the YU7 to build on the momentum of the SU7. Now, according to media reports, which state sources familiar with the company’s internal plans, Xiaomi will no longer proceed with the scheduled June or July launch of the YU7 SUV (which has been in the works since mid-2024), and a new launch date is yet to be officially announced.
This development also comes a few days after the company pulled back on the the SUV’s planned unveiling at the 2025 Auto Shanghai, one of China’s biggest auto industry events, owing to the same accident. Investor sentiment has cooled in response to the recent developments, while Xiaomi’s stock has declined over 20% since mid-March. Despite the setback, the company had raised its EV delivery for this year target to 350,000 units in March The SU7 sedan has already outpaced Tesla’s Model 3 in monthly sales in China, which further raises expectations for future models like the YU7 to enable Xiaomi make a name for itself in the EV market.
Coming back to recent developments, the reason behind both delays is simple – due to a fatal accident on March 29 in Anhui province, where a Xiaomi SU7 sedan (Xiaomi’s maiden electric car, which was formally launched in March 2024) reportedly crashed into a concrete barrier while its autopilot feature was active. The collision resulted in the deaths of three female passengers as the vehicle caught fire on the expressway. The incident has triggered a wave of concern over the safety and reliability of assisted-driving systems in EVs, particularly those developed by newer entrants in the autonomous driving sector, such as Xiaomi. It also attracted the attention of regulators, with China’s industry watchdog summoning a group of automakers to reinforce guidelines around autonomous driving tech.
Now, the fallout from the SU7 accident appears to have prompted a broader reassessment of Xiaomi’s EV goals. In addition to halting the YU7’s rollout, the company has postponed its annual investor day, which had been scheduled for late April, pushing it to June. And as mentioned earlier, Vice President of Xiaomi Auto, Li Xiaoshuang, confirmed via Chinese social media platform Weibo that only the SU7 and its performance variant, the SU7 Ultra, would be featured at Auto Shanghai. When asked about the absence of the YU7, Li responded, “Don’t be anxious, when it arrives it will be in its best state,” attempting to reassure prospective buyers and observers.
Content originally published on The Tech Media – Global technology news, latest gadget news and breaking tech news.
