Xiaomi Corp. has confirmed that one of its SU7 electric vehicles was involved in a fatal crash on an expressway in China. According to local media reports, three people lost their lives in the incident, which is expected to raise concerns over the smart driving technology in modern vehicles. As a result, Xiaomi’s stock dropped by as much as 6.1% in Hong Kong. The company’s shares have fallen nearly 18% since it raised about $5.5 billion in an equity sale last week to support its electric vehicle (EV) expansion.
Shen Meng, director at Beijing-based investment bank Chanson & Co., commented that the crash could cause concerns about Xiaomi’s competitiveness and future growth. He also noted that the recent share sale has affected investor sentiment.
The accident occurred on March 29 on an expressway in Anhui province. Police responded quickly to the scene and have launched an investigation, Xiaomi said in a post on its Weibo account. However, the company did not provide specific details about the victims or injuries, and its representatives did not immediately respond to further inquiries.
According to Xiaomi’s initial report, the vehicle’s advanced driver assistance system (ADAS) had been activated less than 20 minutes before the crash. Alerts were issued when the driver failed to keep their hands on the steering wheel. Seconds later, a warning about obstacles in the road appeared, prompting the driver to take control of the vehicle. Moments after, the crash occurred, and the car caught fire. Only parts of the vehicle, such as the steel chassis, were left intact after the flames subsided, local media reported.
The incident raises concerns about the rollout of advanced driver assistance technology, which requires drivers to remain alert and keep their hands on the steering wheel. Critics worry that some drivers may over-rely on the technology and neglect their responsibility to monitor the road.
Tesla Inc. has faced similar scrutiny in the U.S. regarding its Full Self-Driving system, which has been linked to several accidents, including one fatal crash. The company has also been involved in high-profile accidents in China, such as a 2021 incident when a Tesla owner publicly criticized the company over brake failure during an auto show.
Despite the accident, Xiaomi has seen early success in the EV market. Last month, the company raised its 2025 sales target to 350,000 units, signaling its ambition to expand in the electric vehicle sector.
