Xiaomi’s EV Dream Hits Speed Bump: Xiaomi’s much-anticipated entry into the electric vehicle (EV) market has drawn massive attention, with sleek models like the SU7 and the recently launched YU7 generating buzz and securing thousands of pre-orders. However, the company’s early success is now overshadowed by a growing controversy: buyers are being asked to pay the full remaining balance for their cars well in advance—sometimes months before the scheduled delivery.
Customers Express Growing Frustration
Multiple buyers in China have taken to social media to express outrage, revealing that Xiaomi is demanding full payment long before delivery, with some customers reporting wait times of up to 25 weeks. The company has reportedly warned that failure to pay could lead to their orders being “suspended from production,” forcing customers into a dilemma: pay now without a guaranteed delivery date, or risk cancellation and forfeiture of their RMB 5,000 (approximately €598) deposit.
What’s most concerning to many is the stark contrast with Xiaomi’s earlier promises. The company had previously stated on its official WeChat account that customers could inspect their vehicles before making final payment—a standard industry practice. This new policy, many argue, is both sudden and contradictory.
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Legal Loophole Sparks Backlash
The reason Xiaomi can enforce such a policy lies in a clause hidden within its purchase agreement. According to the contract, Xiaomi reserves the right to demand final payment at any time, based on its “vehicle production arrangements or sales situations.” If a customer fails to pay within seven days of the notice, they are considered in “fundamental breach of contract,” allowing Xiaomi to cancel the order and retain the deposit.
This clause, while legally binding, has sparked backlash from customers who feel misled. Many argue they had no choice but to accept the terms if they wanted to secure the vehicle during its high-demand launch phase.
Speculation Around Xiaomi’s Strategy
Industry watchers speculate that Xiaomi may be using this strategy to manage its long waiting list. By requesting full payment early, the company could be attempting to filter out speculative buyers or those less committed—particularly amid reports that some customers plan to resell the cars for a profit.
However, Xiaomi’s silence on the matter has only fueled concerns. The company has yet to publicly address the backlash or clarify its stance, even as complaints continue to mount.
Trust at Risk in a Competitive Market
Xiaomi’s debut in the EV market was met with widespread optimism, thanks to the SU7 and YU7’s compelling design, advanced tech features, and competitive pricing. But customer experience can make or break a new brand—especially in an already crowded and fiercely competitive space.
While Xiaomi’s hardware credentials are well established, the transition into the automotive world requires more than just sleek design. Building long-term trust with customers is critical—and this payment controversy could leave a lasting dent in the company’s EV ambitions if not resolved swiftly.
