Bloomberg: Xiaomi postpones the release of its first crossover after a fatal accident

According to Bloomberg, Xiaomi has postponed the launch of its first electric crossover, the YU7, after a fatal accident involving the SU7 model. Sales were originally planned to begin in June or July 2025, but a new date has not yet been confirmed. The company also canceled the car's presentation at the Shanghai Auto Show and postponed its annual investor day to June.

The delay is hampering Xiaomi's massive $10 billion electric car project, which is overseen by company founder Lei Jun. The crossover was supposed to help the company better compete with giants like Tesla and BYD.

The postponement was prompted by a March 29 accident in China's Anhui province, in which three women were killed when an SU7 electric car with autopilot engaged crashed into a fence and caught fire. The incident sparked a heated debate about safety and autonomous driving technologies.

Amid a slowing smartphone market, Xiaomi is banking on electric vehicles as a new source of growth. In March, the company raised its EV sales target for 2025 to 350,000 units. However, the incident has sent Xiaomi shares on the Hong Kong stock exchange down more than 20% since mid-March.