Chinese tech giant Xiaomi has reportedly delayed the launch of its upcoming electric SUV following a fatal fire incident involving its first electric sedan, the SU7.
According to sources cited by Bloomberg on Wednesday, Xiaomi initially planned to begin selling its first electric SUV, the YU7, in June or July. However, no official launch date has been set. Bloomberg also reported that plans to unveil the YU7 at this week’s Auto Shanghai 2025 have been canceled. Additionally, Xiaomi’s annual Investor Day has been rescheduled from late April to June.
The delay in the YU7’s release appears to be linked to the deadly fire involving the SU7, Xiaomi’s low-cost electric sedan. On March 29, 2025, in Anhui Province in eastern China, an SU7 operating in autonomous driving mode collided with a guardrail on the highway and exploded, killing three women on board.
There have been circulating rumors that the doors were locked after the crash, preventing the occupants from escaping. Xiaomi refuted these claims, stating that the doors can be manually opened via an emergency release mechanism.
The incident has sparked controversy over the safety of the SU7’s autonomous driving system, battery, and overall safety technology. Authorities have since urged at least 12 automakers to establish stricter regulations for autonomous driving systems.
Bloomberg noted that the YU7 delay signals a disruption in Xiaomi’s electric vehicle strategy.
Xiaomi entered China’s highly competitive EV market in March 2024, the world’s largest automotive market, launching the SU7 at a starting price of approximately 25,800 USD. The launch was a major success, contributing to the fastest quarterly revenue growth since 2021 and prompting the company to raise its production target to 350,000 units for the year.
However, Bloomberg added that Xiaomi’s stock price has fallen more than 20 percent since mid-March, reflecting growing concerns over the outlook of its EV business.