Latest news with #AZu
Yahoo
15-05-2025
- Automotive
- Yahoo
Xiaomi's new EV orders slump in China as consumer backlash grows
SHANGHAI (Reuters) -China's Xiaomi is seeing a slump in new orders for its SU7 electric sedan, analysts said on Wednesday, as the company and its charismatic CEO grapple with a growing consumer backlash that now threatens its runaway sales success. The sporty electric vehicle quickly became a hit among Chinese drivers after it was launched in March last year. By December, its sales had overtaken Tesla's Model 3 in the world's biggest auto market on monthly basis. But Xiaomi is now facing a wave of consumer angst that began last month following a fatal accident involving an SU7. The accident, which is still under investigation, prompted widespread public discussion over the safety of the kinds of smart driving features offered by Xiaomi. Chinese regulators have since further tightened regulatory oversight on the marketing and promotion of such features. Xiaomi did not respond to a Reuters request for comment for this story. New orders for the SU7 fell 55% in April from March and the trend continued in May, with a 13,500 orders placed in the first two weeks of the month, Deutsche Bank analysts said in a note on Wednesday. That compared to 23,000 orders in the second week of March alone, a weekly all-time high. Xiaomi was pulled into further controversy last week after it apologised for what it called "unclear communication" following complaints from customers. SU7 owners said the company had falsely advertised the design of a dual-vent carbon fiber hood it offers at an additional charge of 42,000 yuan ($5,826) on its SU7 Ultra. Nearly 400 owners of the SU7 Ultra had asked for refunds after finding the hood had no air ducts inside, which contradicted previous claims by Xiaomi and its CEO Lei Jun, Shanghai government-owned media the Paper reported on Tuesday. "This crisis not only exposes the credibility crisis of Xiaomi SU7, but also the distortion of some values in the current new energy vehicle industry," it wrote. Lei, who is a social media star in China with 26 million followers on Weibo, said on Saturday the past month had been the most difficult period for him since he founded the electronics maker a decade ago. Other customers and analysts told Reuters that Xiaomi's delivery time estimates for SU7s were creating confusion. Purchasers have often found the estimates greatly overestimate delivery times, and they receive their cars much sooner than expected. That's led some analysts to question whether Xiaomi is seeking to create an artificial sense of scarcity as a marketing tactic. One Chinese blogger calling himself A Zu told Reuters he had created an app allowing buyers to submit their purchase and pick-up information in a bid to better understand Xiaomi's delivery patterns. When checked by Reuters on Wednesday, Xiaomi's official app gave estimated delivery times ranging from 26 weeks to 11 months. A SU7 owner himself, A Zu, who declined to share his real name, said he hoped Xiaomi could be more transparent with its delivery arrangements. Xiaomi has long employed highly successful marketing tactics to sell electronic products such as smartphones, analysts at Chinese consulting firm LandRoads said. "But unlike digital consumer products, the automobile involves longer purchase decision-making processes and bigger investment by consumers, who will have higher requirements on the brand's capability in fulfilling promises and its long-term credibility," it said. ($1 = 7.2083 Chinese yuan renminbi)
Time of India
14-05-2025
- Automotive
- Time of India
Once a darling just six months ago, Xiaomi's EV SU7 faces backlash from customers following a deadly crash; orders slump 55% in April; CEO Lei Jun appears clueless
Xiaomi's new electric vehicle, the SU7, is now facing a steep decline in new orders across China. Once hailed as a rising star in the EV market, the SU7 is seeing a sharp shift in momentum. After a powerful launch that briefly put it ahead of Tesla's Model 3 in China, sales are now dropping due to growing consumer backlash, safety concerns, and a credibility crisis that threatens the company's position in the electric vehicle race. Why are Xiaomi SU7 electric car orders falling so fast? After peaking in March with a record 23,000 orders in a single week, new SU7 orders fell by 55% in April, according to Deutsche Bank analysts. In the first two weeks of May, only 13,500 orders were recorded — a significant drop compared to earlier months. The shift follows a fatal accident involving an SU7, which is currently under investigation. While the cause hasn't been confirmed, the incident sparked intense public debate over the safety of Xiaomi's smart driving features. In response to the public reaction, Chinese regulators tightened rules around how automakers advertise these smart features. Though Xiaomi has remained silent publicly and did not respond to a Reuters request for comment, the damage to its reputation is already visible in the numbers. What sparked backlash over Xiaomi's carbon fiber hood design? Further controversy erupted when SU7 Ultra buyers discovered a misleading design feature. The company had offered a dual-vent carbon fiber hood as a ¥42,000 ($5,826) upgrade. But nearly 400 owners complained that the hood had no actual air ducts — contradicting claims made earlier by both Xiaomi and CEO Lei Jun. Xiaomi issued an apology, calling it a case of 'unclear communication.' However, Shanghai-based news outlet The Paper reported the issue as a 'credibility crisis,' one that not only affects Xiaomi but reflects broader problems in how China's EV industry handles consumer trust. Live Events Is Xiaomi using artificial scarcity in SU7 deliveries? Some buyers have begun questioning the company's delivery transparency. Many customers said they received their vehicles much sooner than the app's estimates, raising suspicions that Xiaomi might be artificially inflating wait times to boost hype and demand. Delivery estimates on Xiaomi's official app currently range from 26 weeks to 11 months, which has added to the confusion. A Chinese blogger known as A Zu, who is also an SU7 owner, even built an app to crowdsource real delivery timelines in an effort to hold the company accountable. Can Xiaomi's smartphone strategy work in the auto industry? Xiaomi has built its success in the smartphone world through flash sales, limited stock, and aggressive marketing. But cars are not smartphones. A vehicle is a major investment, and consumers expect long-term support, accurate specifications, and clear communication. Consulting firm LandRoads explained the difference: 'Consumers will have higher requirements on the brand's capability in fulfilling promises and its long-term credibility.' That shift in consumer expectations may be catching up with Xiaomi as it ventures beyond gadgets and into the high-stakes automotive market. How is CEO Lei Jun handling the growing pressure? Xiaomi's CEO, Lei Jun, is a popular tech personality in China with over 26 million followers on Weibo. He's known for his ability to connect with consumers online, but even he admitted this has been one of the most difficult periods in his career. In a public post on Saturday, Lei acknowledged the past month had tested him deeply. But with safety concerns, misleading product descriptions, and delivery controversies piling up, Lei and his team now face the urgent challenge of rebuilding trust in the SU7 brand. What's next for Xiaomi's electric vehicle business? The SU7 had a strong start, even outperforming Tesla's Model 3 in December 2024 in terms of monthly sales in China. But recent events have cast a shadow over that momentum. As the world's largest EV market becomes more competitive and more regulated, Xiaomi will need to address safety concerns, product transparency, and consumer trust — or risk watching its electric dreams stall out. FAQs: Q1: Why are Xiaomi SU7 electric car orders dropping in China? Due to a fatal crash, safety fears, and backlash over misleading product features. Q2: What's the controversy with Xiaomi SU7's carbon fiber hood? Buyers claim it lacks promised air vents, sparking refund demands and trust issues.
Yahoo
14-05-2025
- Automotive
- Yahoo
Xiaomi's new EV orders slump in China as consumer backlash grows
SHANGHAI (Reuters) -China's Xiaomi is seeing a slump in new orders for its SU7 electric sedan, analysts said on Wednesday, as the company and its charismatic CEO grapple with a growing consumer backlash that now threatens its runaway sales success. The sporty electric vehicle quickly became a hit among Chinese drivers after it was launched in March last year. By December, its sales had overtaken Tesla's Model 3 in the world's biggest auto market on monthly basis. But Xiaomi is now facing a wave of consumer angst that began last month following a fatal accident involving an SU7. The accident, which is still under investigation, prompted widespread public discussion over the safety of the kinds of smart driving features offered by Xiaomi. Chinese regulators have since further tightened regulatory oversight on the marketing and promotion of such features. Xiaomi did not respond to a Reuters request for comment for this story. New orders for the SU7 fell 55% in April from March and the trend continued in May, with a 13,500 orders placed in the first two weeks of the month, Deutsche Bank analysts said in a note on Wednesday. That compared to 23,000 orders in the second week of March alone, a weekly all-time high. Xiaomi was pulled into further controversy last week after it apologised for what it called "unclear communication" following complaints from customers. SU7 owners said the company had falsely advertised the design of a dual-vent carbon fiber hood it offers at an additional charge of 42,000 yuan ($5,826) on its SU7 Ultra. Nearly 400 owners of the SU7 Ultra had asked for refunds after finding the hood had no air ducts inside, which contradicted previous claims by Xiaomi and its CEO Lei Jun, Shanghai government-owned media the Paper reported on Tuesday. "This crisis not only exposes the credibility crisis of Xiaomi SU7, but also the distortion of some values in the current new energy vehicle industry," it wrote. Lei, who is a social media star in China with 26 million followers on Weibo, said on Saturday the past month had been the most difficult period for him since he founded the electronics maker a decade ago. Other customers and analysts told Reuters that Xiaomi's delivery time estimates for SU7s were creating confusion. Purchasers have often found the estimates greatly overestimate delivery times, and they receive their cars much sooner than expected. That's led some analysts to question whether Xiaomi is seeking to create an artificial sense of scarcity as a marketing tactic. One Chinese blogger calling himself A Zu told Reuters he had created an app allowing buyers to submit their purchase and pick-up information in a bid to better understand Xiaomi's delivery patterns. When checked by Reuters on Wednesday, Xiaomi's official app gave estimated delivery times ranging from 26 weeks to 11 months. A SU7 owner himself, A Zu, who declined to share his real name, said he hoped Xiaomi could be more transparent with its delivery arrangements. Xiaomi has long employed highly successful marketing tactics to sell electronic products such as smartphones, analysts at Chinese consulting firm LandRoads said. "But unlike digital consumer products, the automobile involves longer purchase decision-making processes and bigger investment by consumers, who will have higher requirements on the brand's capability in fulfilling promises and its long-term credibility," it said. ($1 = 7.2083 Chinese yuan renminbi) Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
14-05-2025
- Automotive
- Yahoo
Xiaomi's new EV orders slump in China as consumer backlash grows
SHANGHAI (Reuters) -China's Xiaomi is seeing a slump in new orders for its SU7 electric sedan, analysts said on Wednesday, as the company and its charismatic CEO grapple with a growing consumer backlash that now threatens its runaway sales success. The sporty electric vehicle quickly became a hit among Chinese drivers after it was launched in March last year. By December, its sales had overtaken Tesla's Model 3 in the world's biggest auto market on monthly basis. But Xiaomi is now facing a wave of consumer angst that began last month following a fatal accident involving an SU7. The accident, which is still under investigation, prompted widespread public discussion over the safety of the kinds of smart driving features offered by Xiaomi. Chinese regulators have since further tightened regulatory oversight on the marketing and promotion of such features. Xiaomi did not respond to a Reuters request for comment for this story. New orders for the SU7 fell 55% in April from March and the trend continued in May, with a 13,500 orders placed in the first two weeks of the month, Deutsche Bank analysts said in a note on Wednesday. That compared to 23,000 orders in the second week of March alone, a weekly all-time high. Xiaomi was pulled into further controversy last week after it apologised for what it called "unclear communication" following complaints from customers. SU7 owners said the company had falsely advertised the design of a dual-vent carbon fiber hood it offers at an additional charge of 42,000 yuan ($5,826) on its SU7 Ultra. Nearly 400 owners of the SU7 Ultra had asked for refunds after finding the hood had no air ducts inside, which contradicted previous claims by Xiaomi and its CEO Lei Jun, Shanghai government-owned media the Paper reported on Tuesday. "This crisis not only exposes the credibility crisis of Xiaomi SU7, but also the distortion of some values in the current new energy vehicle industry," it wrote. Lei, who is a social media star in China with 26 million followers on Weibo, said on Saturday the past month had been the most difficult period for him since he founded the electronics maker a decade ago. Other customers and analysts told Reuters that Xiaomi's delivery time estimates for SU7s were creating confusion. Purchasers have often found the estimates greatly overestimate delivery times, and they receive their cars much sooner than expected. That's led some analysts to question whether Xiaomi is seeking to create an artificial sense of scarcity as a marketing tactic. One Chinese blogger calling himself A Zu told Reuters he had created an app allowing buyers to submit their purchase and pick-up information in a bid to better understand Xiaomi's delivery patterns. When checked by Reuters on Wednesday, Xiaomi's official app gave estimated delivery times ranging from 26 weeks to 11 months. A SU7 owner himself, A Zu, who declined to share his real name, said he hoped Xiaomi could be more transparent with its delivery arrangements. Xiaomi has long employed highly successful marketing tactics to sell electronic products such as smartphones, analysts at Chinese consulting firm LandRoads said. "But unlike digital consumer products, the automobile involves longer purchase decision-making processes and bigger investment by consumers, who will have higher requirements on the brand's capability in fulfilling promises and its long-term credibility," it said. ($1 = 7.2083 Chinese yuan renminbi) Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
14-05-2025
- Automotive
- Yahoo
Xiaomi's new EV orders slump in China as consumer backlash grows
SHANGHAI (Reuters) -China's Xiaomi is seeing a slump in new orders for its SU7 electric sedan, analysts said on Wednesday, as the company and its charismatic CEO grapple with a growing consumer backlash that now threatens its runaway sales success. The sporty electric vehicle quickly became a hit among Chinese drivers after it was launched in March last year. By December, its sales had overtaken Tesla's Model 3 in the world's biggest auto market on monthly basis. But Xiaomi is now facing a wave of consumer angst that began last month following a fatal accident involving an SU7. The accident, which is still under investigation, prompted widespread public discussion over the safety of the kinds of smart driving features offered by Xiaomi. Chinese regulators have since further tightened regulatory oversight on the marketing and promotion of such features. Xiaomi did not respond to a Reuters request for comment for this story. New orders for the SU7 fell 55% in April from March and the trend continued in May, with a 13,500 orders placed in the first two weeks of the month, Deutsche Bank analysts said in a note on Wednesday. That compared to 23,000 orders in the second week of March alone, a weekly all-time high. Xiaomi was pulled into further controversy last week after it apologised for what it called "unclear communication" following complaints from customers. SU7 owners said the company had falsely advertised the design of a dual-vent carbon fiber hood it offers at an additional charge of 42,000 yuan ($5,826) on its SU7 Ultra. Nearly 400 owners of the SU7 Ultra had asked for refunds after finding the hood had no air ducts inside, which contradicted previous claims by Xiaomi and its CEO Lei Jun, Shanghai government-owned media the Paper reported on Tuesday. "This crisis not only exposes the credibility crisis of Xiaomi SU7, but also the distortion of some values in the current new energy vehicle industry," it wrote. Lei, who is a social media star in China with 26 million followers on Weibo, said on Saturday the past month had been the most difficult period for him since he founded the electronics maker a decade ago. Other customers and analysts told Reuters that Xiaomi's delivery time estimates for SU7s were creating confusion. Purchasers have often found the estimates greatly overestimate delivery times, and they receive their cars much sooner than expected. That's led some analysts to question whether Xiaomi is seeking to create an artificial sense of scarcity as a marketing tactic. One Chinese blogger calling himself A Zu told Reuters he had created an app allowing buyers to submit their purchase and pick-up information in a bid to better understand Xiaomi's delivery patterns. When checked by Reuters on Wednesday, Xiaomi's official app gave estimated delivery times ranging from 26 weeks to 11 months. A SU7 owner himself, A Zu, who declined to share his real name, said he hoped Xiaomi could be more transparent with its delivery arrangements. Xiaomi has long employed highly successful marketing tactics to sell electronic products such as smartphones, analysts at Chinese consulting firm LandRoads said. "But unlike digital consumer products, the automobile involves longer purchase decision-making processes and bigger investment by consumers, who will have higher requirements on the brand's capability in fulfilling promises and its long-term credibility," it said. ($1 = 7.2083 Chinese yuan renminbi) 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
