Xiaomi SU7 with driver assistance system involved in an accident, three dead
Xiaomi has confirmed that one of its SU7 electric cars was involved in an accident on an motorway in China. According to local media, three people were killed in the incident.
Here's What We Know
Following news of the accident, the tech giant's shares fell 6.3 per cent in Hong Kong and ended the day down 5.5 per cent. In total, since Xiaomi raised about $5.5 billion last week to fund the expansion of its electric car business, the stock has fallen nearly 18%, Bloomberg reported.
Shen Meng, a director at Beijing-based investment bank Chanson Co. said "investors may have concerns about Xiaomi's competitiveness and growth prospects after reports of the car crash." The completion of the share sale "also affected sentiment."
According to Xiaomi's post on its Weibo account, police immediately arrived at the scene of the accident on an motorway in Anhui province on 29 March. Xiaomi's statement did not provide any details about the dead or injured. An investigation is currently underway.
According to the company's preliminary data, the driver assistance function was switched on less than 20 minutes before the accident. The system alerted the driver as he was apparently not holding onto the steering wheel. A few seconds later, after another warning about obstacles in the road, the driver took control again. The vehicle then crashed into a concrete barrier on the side of the road.
According to local media reports, the electric car caught fire after the impact. Only some parts were saved, in particular, the steel chassis.
According to Xiaomi's description, the "Navigate on Autopilot" feature can change lanes, accelerate or decelerate the car, turn or brake with minimal human intervention. However, the company advises drivers to remain attentive to road conditions and reminds them that "smart driving" is not the same as "self-driving". In China, drivers are forbidden to let go of the steering wheel even if the driver assistance system is switched on.
This accident could be a test for Xiaomi's automotive ambitions. The company has had instant success with its entry into the electric car market and last month raised its 2025 sales target to 350,000 units. That's more than the combined electric car sales of German brands Volkswagen, Audi, BMW, Mercedes-Benz and Porsche in the Chinese market for 2024.
Source: Bloomberg
