Xiaomi EV sales keep rising, but fatal crash sends stock tumbling

Xiaomi's electric vehicle (Xiaomi EV) division continues to see strong sales, with monthly deliveries flying past 20,000 units with ease for the sixth consecutive month. The company remains confident in reaching its ambitious 2025 delivery target of 350,000 units. In March alone, Xiaomi EV reported delivering over 29,000 cars.

The Xiaomi SU7 was launched in March 2024 and is offered in three variants: Standard, Pro, and Max. The Standard version starts at approximately $29,720 (RMB 215,900), the Pro at $33,900 (RMB 245,900), and the Max at $41,200 (RMB 299,900). Deliveries for the Standard and Max versions began in April, while the Pro variant hit roads in May. Additionally, Xiaomi introduced the SU7 Ultra, a high-performance model with 1,548 horsepower, priced at $73,000 (RMB 529,900). The company reported over 248,000 locked-in orders for the SU7 and delivered more than 135,000 vehicles to date.

Unfortunately, the success is overshadowed by a recent fatal accident. A Xiaomi SU7 crashed into a highway guardrail in Tongling, Anhui, resulting in the deaths of three occupants. The incident occurred on March 29, severely damaging the vehicle's front. According to Xiaomi's statement, the SU7 Standard version was operating on its Navigate on Autopilot (NOA) function at 72 mph. The vehicle detected obstacles and began to slow down, but the driver took control shortly before the collision with the guardrail, impacting at approximately 60 mph. Xiaomi has formed a task force to cooperate with the police investigation and has provided driving data and system operation information.

The Xiaomi SU7 is extremely popular, with customers facing long wait times for delivery of at least 40 weeks, a significant increase from the 26 weeks reported shortly after launch. In the fourth quarter alone, Xiaomi delivered 69,697 SU7 series vehicles.

Xiaomi is ready to expand its EV lineup with the YU7, an electric SUV set to compete with Tesla's Model Y, expected to launch in June or July. The company is also expanding its EV factory in Beijing, aiming for a total annual production capacity of at least 350,000 vehicles, with the second phase expected to begin production mid-year. The existing phase one facility has a planned annual capacity of 150,000 vehicles.

Xiaomi's shares in Hong Kong experienced a drop of approximately 5% following the news of the fatal accident, highlighting the delicate balance between rapid growth and safety concerns in the burgeoning EV market. But if the company keeps its deliveries at the level it reached last month, the 350,000 target for this year won't be a problem.

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