Core Viewpoint - The article discusses Xiaomi's recent developments in the electric vehicle sector, highlighting the challenges and successes faced by the company as it aims to establish itself in the automotive market, particularly through its new models and the impact of its recent annual speech by CEO Lei Jun [2][6][10]. Group 1: Xiaomi's Automotive Business Performance - Xiaomi's automotive revenue reached 213 billion yuan in Q2 2025, marking a 234% year-on-year increase [15][16]. - The number of new vehicle deliveries in Q2 2025 was 81,302, a significant rise from 27,307 in the same period last year, representing a growth of 197.7% [16][19]. - The average selling price (ASP) of Xiaomi vehicles increased from 228,644 yuan to 253,662 yuan, attributed to the launch of the higher-priced SU7 Ultra [18][21]. Group 2: Challenges in Production and Delivery - Xiaomi faces significant challenges with long delivery times, with the SU7 and YU7 models having delivery periods of 35-48 weeks, which is considerably longer than competitors like BYD and Tesla [26][28]. - The company has been criticized for its production capacity issues, which have led to delays and potential customer dissatisfaction [29][30]. - Analysts suggest that the extended delivery times could lead to a loss of customer loyalty and increased competition from other brands offering quicker delivery options [32][33]. Group 3: Quality Control and Public Perception - Xiaomi has faced scrutiny over product quality, particularly following a recall of over 110,000 SU7 vehicles due to software issues that could increase collision risks [33][36]. - There have been multiple complaints regarding the YU7 model, including reports of quality issues and concerns about the vehicles being sold as "test cars" [34][39]. - The company’s rapid growth and aggressive marketing strategies have led to quality control challenges, which could impact its brand reputation if not addressed [43][44].

Core Viewpoint - Xiaomi is facing a significant trust crisis in its automotive division, stemming from safety concerns and quality issues related to its SU7 model, which has led to public criticism and calls for accountability from the company [1][4][5]. Group 1: Safety and Quality Issues - The SU7 model has been involved in incidents such as self-ignition after a collision, raising safety concerns among consumers [1]. - There are allegations of exaggerated claims regarding the NOA intelligent driving system and performance specifications, with the SU7 Ultra's horsepower being limited from 1548 to 900 [1][4]. - Customers have reported issues with the SU7's design, including problems with the headlight frame and fender, contributing to a broader perception of quality control failures [1][19]. Group 2: Consumer Reactions and Legal Challenges - Many customers are demanding refunds and compensation due to perceived false advertising, particularly regarding the SU7 Ultra's carbon fiber hood, which was marketed with misleading claims about its design [7][8]. - A group of dissatisfied customers has formed a legal action group, seeking to sue Xiaomi for false advertising and demanding refunds [8][11]. - Xiaomi's response to customer complaints has been criticized as inadequate, with some customers feeling that the company's attitude is dismissive [11][15]. Group 3: Company Response and Future Outlook - Xiaomi's CEO, Lei Jun, acknowledged the company's responsibility and the need for higher standards following the recent crisis [4]. - A strategic product launch event is scheduled for May 22, where Xiaomi plans to unveil new products, including its first SUV, the YU7, amidst ongoing scrutiny [1][23]. - Recent sales data indicates a decline in Xiaomi's automotive sales, with weekly sales dropping from 7000 to 5200 units over a few weeks, reflecting the impact of the current crisis on consumer confidence [24].