Xiaomi Auto Launches New SU7 to Break Sales Slump; Safety and Quality Control Under Scrutiny

In early 2026, facing cooling market enthusiasm and mounting growth pressures, Xiaomi Auto launched a new version of its SU7 sedan and adopted Tesla’s “7-year low-interest” financing policy to stimulate demand. However, two vehicle fires occurring on the same day—though causing no injuries—have recently reignited public concerns over the car’s safety and reliability. The original SU7 quickly gained popularity thanks to Lei Jun’s star power, the cross-industry tech appeal, and a gap in the market. Now, however, the market has turned fiercely competitive, and consumers are placing greater emphasis on product quality, manufacturing consistency, and long-term reliability. The updated SU7 comes standard across all trims with LiDAR, an 897V high-voltage platform, and air suspension, with a slightly increased starting price of RMB 229,900, positioning itself as offering “the highest value in its price segment” to redefine cost-performance. Meanwhile, Xiaomi is accelerating production capacity expansion, with its Beijing Phase III and Wuhan factories scheduled to come online in 2026, supporting an annual sales target of 550,000 units. Yet challenges remain, including long delivery lead times, quality control pressures, and the need to rebuild brand trust. Whether Xiaomi can evolve from a “viral hit” into a “sustained success” will ultimately determine if its automotive venture can truly take root in the market.