SU7 Ultra Controversy: Hundreds of Owners Demand Refunds from Xiaomi

Xiaomi is facing a wave of dissatisfaction from SU7 Ultra owners after discovering that the car's advertised features didn’t align with its actual performance. The carbon fiber dual air duct hood, promoted as an aerodynamic innovation designed to enhance airflow and cool the wheel hubs, turned out to be mostly decorative. Independent tests by automotive experts and bloggers showed that the hood provides minimal airflow benefits, prompting hundreds of buyers to demand full refunds.

Controversial Design and Escalating Backlash

During its marketing campaign, Xiaomi emphasized the dual air channels in the carbon fiber front cover, claiming they improved aerodynamics by directing airflow toward the wheel hubs for cooling. This feature appealed to many buyers, including one who paid 42,000 CNY (21,427 AED) to add the option.

However, detailed inspections revealed that the air channels were narrow and not connected to any functional cooling system, offering no measurable benefits to dynamic performance or brake temperature reduction. Technical analyses estimated the actual manufacturing cost at only 10,000 CNY (around 5,101 AED), highlighting a significant gap between production value and purchase price. As a result, more than 400 owners are now demanding a return of their vehicles.

Underwhelming Response and Inadequate Compensation

In an attempt to manage the backlash, Xiaomi issued an apology acknowledging the vague and misleading nature of its promotional language. The company clarified that the carbon fiber hood provides limited airflow functionality and contributes modestly to engine cooling, in addition to its visual appeal. As a remedial measure, Xiaomi offered to replace the carbon hood with an aluminum version for undelivered orders and granted affected customers 20,000 compensation points, equivalent to approximately 2,000 CNY (around 1,020 AED).

However, this offer failed to satisfy most owners, who argued that the compensation did not adequately reflect the gap between the price they paid and the actual value received. Furthermore, opting for the aluminum replacement required re-entering a delivery queue with an estimated wait time of 30 to 40 weeks, compounding frustration and further undermining trust in Xiaomi’s handling of the issue.

Media Pressure and Reputation Test for Xiaomi in the Automotive Sector

Amid the strong initial publicity surrounding the SU7 Ultra launch and its competitive starting price of 529,900 CNY (270,345 AED), the current controversy has exposed a clear disconnect between Xiaomi’s marketing narrative and customer expectations. Many buyers were unprepared for the realization that a key promotional feature could significantly erode their trust in the vehicle.

Industry analysts attribute much of the backlash to Xiaomi’s close association with its founder, Lei Jun, who has served as the prominent figurehead for the company’s automotive ambitions. While his visibility initially enhanced brand credibility, it now places him under increased scrutiny as customer demands for transparency and accountability grow.

Future Implications and Fears of Recurring Issues

The controversy surrounding the SU7 Ultra isn't limited to the front air duct cover. Previous criticism emerged following a high speed accident involving the SU7, raising questions about the accuracy of Xiaomi’s promotional terminology regarding its driving technologies. In response, Xiaomi and several competitors began replacing terms like autonomous driving with more cautious phrases such as assisted driving, in an effort to avoid legal and marketing ambiguity.

As Xiaomi prepares to launch its first SUV, the YU7, it faces mounting pressure to sustain consumer trust amid fierce competition from brands like Tesla's Model Y and NIO's ES6. That challenge is only heightened by the damage done to the SU7 Ultra’s credibility.