Xiaomi EV Sales Fall After Deadly Crash, False Advertising Claims
(Bloomberg) -- Xiaomi Corp. electric vehicle sales in China have taken a hit since March after a fatal highway accident and consumer unhappiness around the marketing of one version of its car.
As Coastline Erodes, One California City Considers 'Retreat Now'
How a Highway Became San Francisco's Newest Park
Power-Hungry Data Centers Are Warming Homes in the Nordics
A New Central Park Amenity, Tailored to Its East Harlem Neighbors
Maryland's Credit Rating Gets Downgraded as Governor Blames Trump
Orders for Xiaomi's SU7 sedan plunged to around 36,000 units in April, down 55% month-on-month, Deutsche Bank AG wrote in a note. 'This trend extended into May,' auto analysts led by Bin Wang said.
Deliveries are also suffering, the investment bank said, with volumes down sequentially over the past four weeks, from 7,200 in the third week of April to just 5,200 units in the second week of May.
Local media reports earlier this month said more than 300 people want to cancel their SU7 Ultra EV orders on false advertising about the design of the vehicle's hood. That was the latest upset for Xiaomi after a fatal crash involving one of its SU7 sedans killed three people in late March.
Deutsche Bank's report cited the accident among several reasons for the sales drop, as well as the 'recent dispute on the optional carbon fiber front hood' for the race car version of the SU7, which consumers have argued are just two holes and some plastic structures rather than the promised air ducts to improve aerodynamics and cooling.
Xiaomi's shares in Hong Kong slipped as much as 1.4% Thursday, trimming gains this year to around 44.6%.
Citi Research data show that since the beginning of the year, when sales are usually slow, orders for the SU7 sedan grew from 53,000 in February to 83,400 in March. But there was a sharp drop in April to 35,600, the month after the accident happened. Retail sales meanwhile fell from 29,200 in March to 27,200 a month later.
Bloomberg reported in April that Xiaomi has pushed back the debut of its first sport utility vehicle, the YU7.
Li Yanwei, with the China Automobile Dealers Association, also published an analysis on Wednesday on his Weibo account, showing that Xiaomi's car sales have been falling since mid-April.
Outside of impacting consumer demand, the accident has brought more scrutiny to EV safety.
Chinese authorities have tightened the promotion and deployment of advanced driver assistance systems, as the Xiaomi EV had the autopilot function turned on at the time of the crash. New standards are also being set for battery stability and recessed door handles that are popular in electric cars but which may become inoperable in the event of emergencies if the EV loses power.
--With assistance from Charlotte Yang.
(Updated with Citi data, further detail from 7th paragraph.)
Cartoon Network's Last Gasp
DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race
Why Obesity Drugs Are Getting Cheaper — and Also More Expensive
As Nuclear Power Makes a Comeback, South Korea Emerges a Winner
Trump Has Already Ruined Christmas
©2025 Bloomberg L.P.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
33 minutes ago
Rights group says global brands are at risk of links to forced labor in China's minerals industry
LONDON -- Several global brands are among dozens of companies at risk of using forced labor through their Chinese supply chains because they use critical minerals or buy minerals-based products sourced from China's far-western Xinjiang region, an international rights group said Wednesday. The report by the Netherlands-based Global Rights Compliance says companies including Avon, Walmart, Nescafe, Coca-Cola and paint supplier Sherwin-Williams may be linked to titanium sourced from Xinjiang, where rights groups allege the Chinese government runs coercive labor practices targeting predominantly Muslim Uyghurs and other Turkic minorities. The report comes as China and the United States, the world's two largest economies, continue talks aimed at easing their trade dispute. The report found 77 Chinese suppliers in the titanium, lithium, beryllium and magnesium industries operating in Xinjiang. It said the suppliers are at risk of participating in the Chinese government's 'labor transfer programs," in which Uyghurs are forced to work in factories as part of a longstanding campaign of assimilation and mass detention. Commercial paints, thermos cups and components for the aerospace, auto and defense industries are among products sold internationally that can trace their supply chains to minerals from Xinjiang, the report said. It said companies must review their supply chains. 'Mineral mining and processing in (Xinjiang) rely in part on the state's forced labor programs for Uyghurs and other Turkic people in the region,' the report said. The named companies did not immediately comment on the report. A 2022 United Nations report found China may have committed crimes against humanity in Xinjiang, where more than 1 million Uyghurs are estimated to have been arbitrarily detained as part of measures the Chinese government said were intended to target terrorism and separatism. The Chinese government has rejected the U.N. claims and defended its actions in Xinjiang as fighting terror and ensuring stability. In 2021, former U.S. President Joe Biden signed a law to block imports from the Xinjiang region unless businesses can prove the items were made without forced labor. The law initially targeted solar products, tomatoes, cotton and apparel, but the U.S. government recently added new sectors for enforcement, including aluminum and seafood. A recent report by the International Energy Agency said the world's sources of critical minerals are increasingly concentrated in a few countries, notably China, which is also a leading refining and processing base for lithium, cobalt, graphite and other minerals. Many of China's major minerals corporations have invested in the exploration and mining of lithium, a key component for electric vehicle batteries, in Xinjiang, Global Rights Compliance said. Xinjiang is also China's top source of beryllium, a mineral used for aerospace, defense and telecommunications, its report said.
Bloomberg
33 minutes ago
- Bloomberg
Unleashing the power of data and technology in an age of digital transformation
Digital transformation projects are nothing new in capital markets, with buy-side and sell-side firms aiming to optimize their technology and data stacks to transform downstream business processes. This article shares how Bloomberg sees digital transformation and the strategies it employs to solve data and technology pain points for its clients.
Yahoo
36 minutes ago
- Yahoo
GM pledges $4 billion in new U.S. manufacturing investments
General Motors will invest $4 billion in three U.S. manufacturing sites over the next two years to prepare for changing production slated to begin in 2027. Two popular Chevrolet models also will move to U.S. plants from Mexico as part of the shift. As part of the announcement on June 10, GM also confirmed reports that it has no current plans to produce electric vehicles at its Michigan Orion Assembly plant. Instead, the company will produce gas-only vehicles at the plant after its retooling. The Chevrolet Blazer also is slated for a refresh, the company spokesman confirmed, and its production will move from Mexico to the United States by 2027. The new investment will not reduce any production in North America, according to a company spokesman, and does not include previously announced U.S. investment as part of its 2023 UAW labor contract. Sam Abuelsamid, vice president of market research at Telemetry, said his interpretation of the news is that GM's production changes come as a response to President Donald Trump's tariffs. Trump imposed 25% tariffs on imported vehicles and 25% tariffs on many auto parts imported into the United States earlier this year. 'They won't say it outright, but it's almost certain that they're moving production from Mexico to the U.S.,' he said, 'You're looking at between 400,000 and 500,000 more units in the U.S. They're not expecting to sell that many more vehicles in the U.S.' More: General Motors commits $888 million to build next-gen V-8 engine in New York GM planned to relaunch Orion Assembly after a $4 billion retooling and expansion to assemble the Silverado EV and GMC Sierra EV later this year for late 2025 model year production, but that was pushed ahead six months to mid-2026. Previously, Orion made the Chevrolet Sonic and Bolt EVs, though production of those vehicles ended there last year. The plan now is to produce gas-powered full-size SUVs and light duty pickup trucks at Orion in early 2027, according to the company. Also by then, GM's Factory Zero in Detroit-Hamtramck will serve as the dedicated assembly location for the Chevrolet Silverado EV, GMC Sierra EV, Cadillac Escalade IQ, and GMC Hummer EV pickup and SUV. GM's production announcement was met with near-universal praise from the White House, the United Auto Workers union, and Michigan politicians on both sides of the aisle. 'No president has taken a stronger interest in reviving America's once-great auto industry than President Trump, and GM's investment announcement builds on trillions of dollars in other historic investment commitments to Make in America,' White House spokesman Kush Desai said in a statement. 'The One, Big, Beautiful Bill's tax cuts, pro-growth policies, and full expensing of equipment investments will only turbocharge this resurgence under President Trump.' Trump's 'Big, Beautiful' tax bill proposes, among other things, to kill the electric vehicle tax credit by the end of this year and penalize hybrid and electric vehicle owners with annual fees to compensate for lost revenue customers would have paid in gas tax. UAW President Shawn Fain said in a statement that the union had said for months that the auto industry could utilize excess capacity at U.S. auto plants and invest billions into factories, communities and American autoworkers. 'While other companies drag their feet, GM is showing that strategic auto tariffs work with a massive $4 billion investment that will create thousands of good paying union jobs. Thanks to the dedication of our members, who have been speaking up about the damage done by bad trade deals, we are finally starting to see real progress,' he said. 'It's time to invest in blue collar America, and GM is showing how it's done. This is just the beginning.' U.S. Rep. and House Republican Conference Chairwoman Lisa McClain, R-Bruce Township, said in a statement GM's decision follows a series of economic moves made by the Trump administration aimed at reversing decades of industrial decline. The Orion Assembly plant is located in McClain's congressional district. 'This investment is a game-changer for our district and a big win for hard-working Michiganders,' McClain said. 'For months, we have said the president's efforts would pay off and more companies would invest in America again. Putting our country first, for the first time in years, is working. This investment is proof. I'm proud to have helped deliver this major win for our community.' U.S. Rep. Debbie Dingell, D-Ann Arbor, also praised the decision. 'This is good news for Michigan's workers and our role as a leader in the global auto industry. In order to remain a leader, we must be producing a robust product line that consumers want, including electric vehicles,' she said in a statement. 'The global market wants EVs. This investment demonstrates the auto industry's commitment to this leadership, and U.S. policy must support it. I will continue to work with every stakeholder to invest in manufacturing here at home, bring back jobs from overseas, and support the workers and communities who have built their lives around the auto industry." GM CEO Mary Barra said in a statement: 'We believe the future of transportation will be driven by American innovation and manufacturing expertise. Today's announcement demonstrates our ongoing commitment to build vehicles in the U.S. and to support American jobs. We're focused on giving customers choice and offering a broad range of vehicles they love.' GM also is retooling its Fairfax Assembly plant in Kentucky and the Spring Hill Manufacturing plant in Tennessee. Fairfax Assembly will produce the gas-powered Chevrolet Equinox beginning in mid-2027, and will start producing the 2027 Chevrolet Bolt EV by the end of 2025. The Mexico-assembled Equinox is one of GM's top-selling vehicles and the No. 1 single nameplate that GM produces in Mexico for the U.S. market. GM exported 257,000 gas and electric Equinox vehicles from its Ramos plant across 2024, Abuelsamid said. More: Trump scales back tariffs on automakers, but analysts still expect car prices to rise GM said it plans to announce further investments to Fairfax for electric vehicles in the future. As for Spring Hill, in addition to bringing the Chevrolet Blazer production up from Mexico, the plant will also produce the Cadillac Lyriq and Vistiq EVs, as well as the Cadillac XT5. Once these changes come into play, Abuelsamid said, vehicle costs may rise. 'GM will probably increase prices once they increase U.S. production,' he said. 'That's why these vehicles were built in Mexico in the first place.' Free Press staff writer Todd Spangler contributed to this report. Jackie Charniga covers General Motors for the Free Press. Reach her at jcharniga@ This article originally appeared on Detroit Free Press: GM pledges $4 billion in new U.S. manufacturing investments Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
