Xiaomi's SU7 electric vehicle sales in China have significantly dropped following a tragic accident in March and subsequent allegations of misleading advertising. As reported by Bloomberg, citing a Deutsche Bank report, orders fell to around 36,000 units in April — a decrease of 55% compared to March. The decline continued into May, with delivery volumes dropping from 7,200 cars in the third week of April to 5,200 in the second week of May.

The drop has been attributed to the aftermath of the accident that claimed three lives, as well as a scandal surrounding the SU7 Ultra. Over 300 customers are looking to cancel their orders due to deceptive advertising regarding the hood design. Xiaomi claimed that the vehicle featured air channels for improved aerodynamics, but it turned out they were fake.

The incidents have impacted not only the company's reputation but also its financial performance: shares of Xiaomi in Hong Kong fell by 1.4%. Previously, in February-March, the SU7 had shown positive sales trends, but demand sharply declined in April.

Analysts, including those from the China Automobile Dealers Association, are also observing a steady decline in sales since mid-April. Earlier, Bloomberg reported that due to these issues, Xiaomi postponed the launch of its first crossover, the YU7.

In the wake of the accident, Chinese regulators have heightened scrutiny over electric vehicle safety, paying special attention to autopilot systems — which were active at the time of the crash. Additionally, requirements for battery reliability and the design of retractable door handles are being reviewed, as they could complicate evacuation in the event of a power failure.