Xiaomi’s EV Ambitions Falter Amid SU7 Ultra Lawsuits

Xiaomi’s bold venture into electric vehicles (EVs) has encountered significant hurdles, exposing the pitfalls tech brands face in their rush to embrace EVs.

The tech giant entered the EV market with the SU7 sports sedan in China in 2024. Its top-spec ‘Ultra’ variant launched in February 2025 with 1,526 horsepower. However, the owners of this particular variant aren’t particularly happy with Xiaomi.

Decorative Hood Backlash

Over 400 SU7 Ultra owners have launched legal action in China, alleging misrepresentation of the vehicle’s ¥42,000 (approx. ₹4.95 lakh) optional carbon fibre hood. Promoted as a “track-level cooling design” with dual air ducts, tests by automotive bloggers revealed the ducts were primarily decorative, offering minimal airflow.

Xiaomi’s marketing, including claims by CEO Lei Jun, hyped the hood’s performance benefits, but inspections showed little difference from standard models, infuriating buyers who expected enhanced functionality.

Tech Firms’ Early EV Struggles

Xiaomi’s blunder mirrors challenges faced by other tech giants, like Huawei, venturing into EVs. First-generation products often suffer from overhyped features or technical shortcomings, as companies navigate the complex automotive landscape.

Xiaomi’s response—an apology, ¥2,000 loyalty points, or hood replacements—has not quelled discontent, with over 300 owners demanding full refunds for what they call false advertising.

Global Lessons

Xiaomi’s SU7 Ultra controversy highlights the risks of tech brands’ rapid pivot to EVs, where marketing can outpace execution. For global consumers, it serves as a cautionary tale about the teething problems of early EV models.

As Xiaomi works to address the backlash, restoring consumer trust will be critical to sustaining its automotive ambitions in a competitive market.

Also read: OPG Mobility Makes Key Appointments To Drive Growth In EV Market