China’s Tesla Model 3 Rival Xiaomi SU7 Sees Sales Drop Amid Consumer Blacklash

China’s Xiaomi is experiencing a significant drop in new orders for its popular SU7 electric sedan. The sales decline comes amid consumer backlash, safety concerns, and speculations that Xiaomi might be creating an artificial sense of scarcity to market the vehicle.

The Xiaomi SU7 came into the market with a lot of momentum. The vehicle proved very popular, surpassing even the Tesla Model 3 in China in December last year.

Big Declines and Consumer Angst

According to a Reuters report, new orders for the Xiaomi SU7 fell 55% in April from March. The decline continued this May, with only 13,500 orders being placed in the first two weeks of the month, according to a note from Deutsche Bank analysts on Wednesday. While these numbers are not bad by any means, they are alarmingly low since Xiaomi saw a weekly all-time high of 23,000 orders for the SU7 in the second week of March 2025.

The SU7’s sales downturn comes amidst an ongoing investigation into a fatal accident involving the all-electric sedan, which prompted public scrutiny over the safety of smart driving features offered by Xiaomi. Chinese regulators have since tightened oversight on the marketing and promotion of such features. 

Xiaomi also faced consumer backlash over a “dual-vent carbon fiber hood” that was sold as an optional 42,000 yuan ($5,826) upgrade to the SU7 Ultra. Nearly 400 SU7 Ultra owners have now asked for refunds, claiming that the optional hood lacks internal ducts, contradicting earlier statements by CEO Lei Jun. The executive, in a comment on Weibo, acknowledged the issues Xiaomi is currently facing. He also stated that the past month has been the most difficult period for him since founding the company.

Delivery Confusions and Market Tactics

Xiaomi’s delivery estimates for the SU7 range from 26 weeks to 11 months on its app. These varying estimates have confused buyers, with some receiving cars sooner than expected. Critics have speculated that Xiaomi is creating an artificial sense of scarcity for the vehicle as a marketing tactic. 

A Zu, a Xiaomi SU7 owner, blogger, and app developer, told Reuters that consumers are now taking it upon themselves to figure out the company’s vehicle delivery patterns. A Zu himself has created an app to help SU7 customers understand the company’s deliveries. In a comment to the publication, the app developer stated that he is hoping Xiaomi could be more transparent with its delivery arrangements in the future.

EV.com recognizes Xiaomi’s SU7 challenges amidst consumer and regulatory pressures. You can explore the best offers on popular electric vehicles on our listings here.