Chinese tech giant Xiaomi (1810.HK) is actively cooperating with authorities following a tragic accident involving its SU7 electric vehicle in Anhui province. The incident, which occurred on March 29 in Tongling, resulted in the deaths of the driver and two passengers. Xiaomi has handed over all driving and system data to the police as part of the ongoing investigation.
First Major Crash for the SU7 EV
The accident marks the first major crash involving the Xiaomi SU7, a sedan launched in March 2024. Since December, the SU7 has outsold Tesla’s Model 3 in China, making it one of the country’s most popular EVs.
The company confirmed in a statement that the vehicle was operating in Navigate on Autopilot (NOA) mode before the crash. According to Xiaomi’s data, the car was traveling at 116 kph (72 mph) when the driver took over and attempted to slow down. However, the vehicle still collided with a cement pole at 97 kph (60 mph), leading to a fatal impact.
Xiaomi Shares Drop After Incident
Xiaomi’s stock, which had surged 34.8% year-to-date, experienced a sharp decline following news of the accident. On Wednesday, shares fell 5.5%, significantly underperforming the Hang Seng Tech Index, which saw a marginal 0.2% gain. Investors are now closely monitoring how the crash might impact Xiaomi’s growing presence in the electric vehicle sector.
Autopilot Warning Came Too Late?
Xiaomi provided details about the system’s response leading up to the crash. According to the company’s Weibo post, NOA detected obstacles ahead and issued a risk warning only seconds before impact. This raises concerns about whether the vehicle’s smart driving technology provided sufficient reaction time for the driver to take control.
Reports from Chinese media indicate that the car caught fire after the collision, though Xiaomi has not officially addressed this aspect in its statement. The presence of fire in EV accidents has been a major safety concern in the industry, adding to scrutiny over battery safety and crash resistance.
Standard SU7 Version Lacks Advanced Safety Features
Xiaomi confirmed that the crashed vehicle was the standard version of the SU7, which lacks the high-end LiDAR-based navigation system. Unlike the advanced model, which features collision avoidance and improved vehicle recognition, the standard version relies on a less sophisticated vision-based system.
Experts suggest that had the vehicle been equipped with LiDAR technology, it might have detected obstacles earlier and possibly prevented the crash. However, questions remain about whether the driver’s response time was also a contributing factor.
Impact on Xiaomi’s EV Ambitions
Xiaomi entered the EV market last year, leveraging its strong reputation in smartphones and smart gadgets. The SU7 was a crucial part of the company’s expansion strategy, positioning Xiaomi as a serious contender against Tesla and local competitors like BYD and NIO.
However, safety concerns following this accident could slow Xiaomi’s momentum. The company is now under pressure to enhance its smart driving systems and ensure public confidence in its EV technology.
Ongoing Investigation
Authorities are continuing their investigation, examining the SU7’s driving logs and crash dynamics. Xiaomi has pledged full cooperation, stating that it remains committed to safety and transparency.
As details emerge, the incident is likely to ignite further debate on the reliability of autonomous driving systems and their role in modern transportation. Whether Xiaomi can recover from this setback will depend on how effectively it addresses safety concerns and reassures potential buyers.
