After Skyrocketing, Xiaomi Electric Car Sales Continue To Drop, This Is The Cause

Xiaomi SU7. (Doc. Xiaomi Auto)

JAKARTA - Xiaomi EV is facing challenges as sales of its first electric vehicle, SU7, decreased for three consecutive weeks.

Quoting from the CarNewsChina page, Friday, May 16, based on insurance registration data provided by the China Auto Dealer Association, from 16 to 19 weeks of vehicle sales fell from 7,200 to 5,200 units. Especially the standard SU7 model whose weekly sales fell from 6,700 units to 4,700 units.

The decline in sales comes amid what Xiaomi founder Lei Jun described as "the hardest period since setting up Xiaomi" in a Weibo post on May 10.

So what is the reason for the decline in sales of Xiaomi electric cars? Even though this Chinese brand had soared sales after its first electric car officially launched.

Trust crisis

The crisis of trust is said to be the culprit because of the many controversies that have occurred. For example, the carbon optic fiber hood for SU7 Ultra at a price of 42,000 yuan or around Rp95 million. The head is said to be able to channel double air that directs the airflow to the wheel hub for cooling. However, the owner found that the hood does not have air directioning function or increased cooling performance compared to the standard aluminum cap, while it only reduces weight to 1.3 kg.

Another controversy is the problem of power constraints. OTA update in May limited maximum power from 1,548 hp to 900 hp, which required users to achieve a specific trajectory performance metric to unlock power. This contradicts Xiaomi's early marketing which emphasizes SU7 Ultra power as the primary selling value, claiming a top speed of 350 km/hour and positioning it as "the world's fastest four-door production car."

Another thing that is of concern is safety concerns. At the end of March, a yellow Xiaomi SU7 Ultra had an accident while traveling at high speed, followed by another major highway accident that shocked the country, prompting Xiaomi to prioritize safety measures.

More than 30 potential owners of SU7 Ultra protested at a shipping center in Beijing with banners claiming 'fake advertising' More than 300 owners formed rights protection groups, demanding refunds plus triple compensation.

Industry observers argue that Xiaomi's challenge highlights the general issue of industries prioritizing marketing over technology, and that the outstanding company controversy is pushing for broader industrial reforms in China's electric vehicle sector.