Xiaomi Faces Backlash Over Year-Long Wait for YU7 SUV

Xiaomi, a prominent tech company, is facing significant criticism from customers due to the revelation that deliveries for its newly launched YU7 electric SUV will take up to a year. The company initially celebrated an impressive 240,000 orders within just 18 hours of the vehicle's debut on June 26, 2025. However, the excitement quickly turned into frustration as customers were informed of the extensive wait times only after placing their orders and making a non-refundable deposit of 5,000 yuan.

The official Xiaomi app indicated that new orders would face a wait time of between 38 to 60 weeks for the standard version, with other variants having a slightly shorter wait of 33 weeks. This news sparked outrage among buyers, who felt blindsided by the delay. Over 400 customers have submitted formal complaints on Sina’s Black Cat complaint platform, citing a lack of transparency from Xiaomi regarding the delivery timeline. Many customers expressed that they would not have placed their orders if they had known about the extended wait time.

Customers also raised concerns about potential financial penalties, particularly the risk of missing out on China’s current tax exemption for electric vehicles, which is set to expire at the end of 2025. A delayed delivery into 2026 could result in buyers paying thousands more than initially anticipated. Xiaomi has not officially commented on the controversy, but the company’s CEO, Lei Jun, announced on Weibo that he would address frequently asked questions about the YU7 rollout during a livestream event scheduled for Wednesday.

This is not the first time Xiaomi has dealt with consumer frustration. Earlier this year, the company faced backlash over a fatal crash involving its first model, the SU7 sedan, as well as delivery timelines and unclear options for that vehicle. The YU7’s launch was widely anticipated as a direct rival to Tesla’s Model Y, the best-selling SUV in China. The YU7 comes in at a base price of 253,500 yuan, approximately 4% cheaper than the Model Y. Xiaomi’s CEO, Lei Jun, has repeatedly stated that the company intends to challenge Tesla’s dominance in the SUV industry with the YU7, just as the SU7 has outperformed Tesla’s Model 3 in monthly sales since December.

However, the YU7’s popularity likely exceeded the company’s expectations, impacting its ability to deliver. Xiaomi’s EV production facility in Beijing has grown aggressively, with monthly output increasing from 4,000 units in March 2024 to 28,000 units in May 2025. The company plans to expand further with new factories on two nearby plots of land. Despite these efforts, the delivery delays highlight the discrepancies between Xiaomi’s marketing ambitions and its operational capacity in the EV industry. The situation has raised questions about the company’s supply chain and production capabilities, as well as its ability to manage high demand effectively.