Xiaomi’s newly launched YU7 electric SUV has received over 400 complaints after the company revealed delivery times of up to 60 weeks.

The car saw a surge of 240,000 orders within 18 hours of its May 22, 2025 release. However, only a limited number of units were available for immediate delivery.

Most buyers now face wait times between 38 and 60 weeks, according to Xiaomi’s app.

Customers had to pay a non-refundable deposit of 5,000 yuan (US$698) to place their orders.

Buyers reported on Sina’s Black Cat platform that they were not informed of the long wait times beforehand. Some also raised concerns about potential price hikes if EV tax exemptions expire by year-end.

Xiaomi has not responded to the complaints, but CEO Lei Jun said he would address the issue.

.source-ref{font-size:0.85em;color:#666;display:block;margin-top:1em;}a.ask-tia-citation-link:hover{color:#11628d !important;background:#e9f6f5 !important;border-color:#11628d !important;text-decoration:none !important;}@media only screen and (min-width:768px){a.ask-tia-citation-link{font-size:11px !important;}}

🔗 Source: Reuters

🧠 Food for thought

1️⃣ China’s NEV tax policy creates urgency around delivery delays

The long delivery wait for Xiaomi’s YU7 intersects with China’s changing NEV tax incentive structure, creating financial uncertainty for buyers.

Customers who ordered the vehicle expecting delivery in 2025 may now receive it in 2026, when the tax exemption drops from RMB 30,000 ($4,170) to just RMB 15,000 ($2,078) according to China’s extended NEV tax policy that runs through 20271.

This timing creates a significant financial penalty for buyers caught in the delay, effectively increasing their total purchase cost despite locking in the original vehicle price.

The standard vehicle purchase tax in China is 10% of the vehicle’s value, making these exemptions a substantial factor in purchase decisions for price-sensitive consumers2.

Xiaomi’s required non-refundable deposit of 5,000 yuan ($697) further complicates the situation for buyers who might prefer to cancel and look elsewhere.

2️⃣ Production scaling challenges persist for tech companies entering EV market

Xiaomi’s production-demand mismatch highlights the persistent challenge tech companies face when transitioning to automotive manufacturing.

Despite ramping up monthly production capacity seven-fold from 4,000 to 28,000 units since entering the EV market, Xiaomi’s capacity remains dramatically insufficient to meet the 240,000 orders received in just 18 hours for the YU73.

The production scaling issue isn’t unique to Xiaomi—Tesla similarly reported significant delivery challenges in Q1 2025, with a gap of approximately 26,000 vehicles between production (362,615) and deliveries (336,681)4.

Automotive manufacturing requires complex supply chains and production expertise that differs substantially from consumer electronics, creating a steep learning curve even for companies with substantial financial resources.

3️⃣ EV market competition intensifies with aggressive pricing strategies

Xiaomi’s strategic pricing of the YU7 at 4% below Tesla’s Model Y reveals the intensifying competition in China’s electric SUV market.

The company has explicitly targeted Tesla’s bestselling SUV, with CEO Lei Jun openly stating Xiaomi’s ambition to challenge the Model Y for market leadership1.

China’s dominance in the global EV market—accounting for 60% of worldwide electric car sales in 2022 with nearly 5.67 million units sold—has created both opportunity and intense competition for manufacturers1.

The aggressive pricing combined with the high volume of initial orders suggests Xiaomi has successfully generated consumer interest, but delivery execution will ultimately determine whether this translates to sustained market share gains.

Recent Xiaomi developments

……