Core Viewpoint - Xiaomi is facing significant challenges in ramping up production capacity for its new electric vehicle, the YU7, which has seen overwhelming demand leading to extended delivery times of up to a year for some models [3][4][6]. Production Capacity - The YU7 has a delivery time of 9 months to over a year, with the standard version estimated at 58-61 weeks and the Pro version at 51-54 weeks [3][4]. - Currently, all Xiaomi vehicles are produced at the first phase factory in Beijing, which has a designed annual capacity of 150,000 units but has been pushed to produce approximately 36,500 units annually, a 140% increase from its original plan [7][8]. - The second phase factory, set to be completed in mid-June, will also have a capacity of 150,000 units per year and is expected to start production in July or August [4][10]. Competitive Landscape - Competitors are actively trying to capture Xiaomi's potential customers during this production bottleneck, offering incentives such as cash bonuses for switching orders [5][14]. - The electric SUV market is highly competitive, with established players like Tesla and emerging brands like NIO and Xpeng vying for market share [5][19]. Market Dynamics - The upcoming reduction in tax incentives for electric vehicles in 2024 and 2025 could impact consumer purchasing decisions, potentially increasing the cost of the YU7 by over 10,000 yuan due to tax changes [6][24]. - Xiaomi's ambitious target of delivering 350,000 vehicles this year hinges on its ability to quickly resolve production capacity issues and fend off competitive pressures [6][13]. Production Challenges - Xiaomi's management acknowledges the production challenges and is actively working to improve capacity, with plans for a third factory in Wuhan and Shanghai still in the rumor stage [4][10]. - The YU7's production complexity is heightened by the fact that 90% of its components are newly developed, unlike Tesla's strategy of using shared parts across models [21][23]. Consumer Sentiment - Despite long wait times, Xiaomi's loyal customer base remains patient, but there are concerns that potential buyers may be deterred by the lengthy delivery periods [11][13]. - The brand's strong marketing and product appeal are crucial for retaining customers amidst fierce competition and production delays [23][24].

Core Viewpoint - The launch of Xiaomi's first SUV, the YU7, faced significant technical issues during the pre-order process, leading to consumer frustration and potential delays in vehicle delivery [3][5][8]. Group 1: Technical Issues - Many consumers experienced system errors while trying to lock in their orders, including incorrect prompts for pre-filled identity information, which delayed their ability to complete purchases [3][5][7]. - Complaints included issues such as "pre-filled customer information not displaying," "lock order button not showing," and "duplicate payments," which contributed to significant delays in securing orders [5][8]. - The technical failures resulted in some consumers missing out on timely order placements, which could affect their position in the order queue [5][8]. Group 2: Delivery Timeline and Capacity Challenges - The expected delivery time for the YU7 has extended to 37-57 weeks, with some customers potentially waiting until 2026 or 2027 to receive their vehicles [8][9]. - Xiaomi's production capacity is limited, with the first phase factory having an annual capacity of 150,000 units, and the second phase expected to start production in July 2023, but with limited output due to ramp-up challenges [9][10]. - The initial order volume of 240,000 units within the first 18 hours has already exceeded the available capacity, raising concerns about the company's ability to meet demand [9][10]. Group 3: Competitive Response - Competitors have quickly capitalized on Xiaomi's delivery issues, offering discounts and incentives to attract potential YU7 customers, such as cash rebates and service packages [11][12]. - Xiaomi's founder, Lei Jun, has acknowledged the situation but suggested that other domestic electric vehicles are also good options for consumers [12]. Group 4: Legal and Consumer Rights - Consumers have raised concerns about the inability to refund deposits due to system failures, questioning the fairness of Xiaomi's policies [13][14]. - Legal experts suggest that Xiaomi may be liable for damages caused by technical failures that prevented timely order placements, potentially violating consumer protection laws [14][15]. Group 5: Future Outlook - Xiaomi is actively working to address production bottlenecks by accelerating factory construction and improving operational efficiency [10][18]. - The company's ability to enhance production capacity and restore consumer confidence will be critical for its future success in the automotive market [18].