Xiaomi Evs Hit By Major Recall As 40% Of SU7 Sedans Need Assisted Driving Fix

Xiaomi will recall 116,887 Standard Edition SU7 sedans, about one-third of the model's cumulative sales, and deploy an over-the-air software fix to address flaws in its advanced driver assistance system.

The issue affects nearly 40% of SU7 sedans sold, Bloomberg reported, citing China's State Administration for Market Regulation (SAMR).

Regulators said the L2 highway pilot system may not adequately recognize or warn of extreme driving scenarios, raising collision risks if drivers do not intervene. Xiaomi said the update will be rolled out through its HyperOS 1.10.0 system, covering both the SU7 sedan and the YU7 SUV, with improvements including enhanced speed adjustment in rainy and nighttime conditions.

The SU7, launched in March 2024, has become Xiaomi's flagship EV. Deliveries reached 305,055 units by July and 339,421 by August, accounting for nearly 89% of the company's EV sales. 

At launch, the standard model did not include lidar sensors, which help vehicles map their environment. The YU7 SUV, introduced in June, logged over 240,000 preorders within 18 hours and delivered 24,824 units by August.

The recall follows a March 29 crash involving a standard-version SU7 that killed three people after the assisted driving function disengaged one second before the vehicle struck a highway guardrail. The accident prompted Chinese authorities to tighten oversight of driver assistance technologies and EV designs, including recessed door handles.

In July, founder and CEO Lei Jun said Xiaomi's EV division is expected to turn profitable in the second half of 2025, citing momentum from the SU7. The unit posted a 500 million yuan ($69 million) loss last quarter, narrowing from 700 million yuan previously. 

The SU7 has outsold Tesla's Model 3 in China every month since December through July, with 136,854 units delivered in 2024 and a full-year 2025 target of 350,000.

On Stocktwits, retail sentiment for Xiaomi was 'bullish' amid 'low' message volume.

Xiaomi's U.S.-listed stock has risen 65.8% so far in 2025.

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