by Lawsuit Against Xiaomi
Xiaomi lost in court for misleading buyers about the design of the carbon fiber hood for the SU7 Ultra electric car. Although the company positioned this element as a functional improvement, owners discovered that it provided no cooling benefits, except for a slight weight reduction. Approximately 300 SU7 Ultra owners reported problems with this component.
Deceptive Advertising and Customer Reaction
Initially, the hood was advertised as a part with large air intakes that improve cooling, but in practice, it turned out to be merely a decorative element. Customer disappointment led to a public scandal, and one of them filed a lawsuit, accusing Xiaomi of false advertising. The owner paid 42,000 yuan for the hood, but after its removal, discovered that the internal structure was almost identical to the standard aluminum version.
Court Decision and Consequences
The court in China supported the buyer’s position and rejected Xiaomi’s appeal. The company is required to refund the deposit of 20,000 yuan, pay compensation of 126,000 yuan, and cover court costs of 10,000 yuan. This case was not a class action lawsuit, but may set a precedent for similar cases in the future.
Xiaomi published an apology, insisting that the hood had exclusively an aesthetic function and was created based on the prototype of the SU7 Ultra. To appease customers, the company offered 20,000 bonus points to everyone who purchased the hood, which is equivalent to approximately 2,000 yuan.
Potential Future Lawsuits
Although the financial obligations in this case are insignificant for a large company like Xiaomi, there is a risk of further lawsuits from other owners who also invested in this expensive option. The offered points may prove insufficient to prevent new legal proceedings, especially given the scale of dissatisfaction.
This situation highlights the importance of transparency in the automotive industry, where technological innovations are often accompanied by marketing claims. For Xiaomi, which relatively recently entered the electric car market, consumer trust may be a key factor in competitive struggle. Such cases can affect not only financial performance but also the brand’s reputation in the long term.
