Azernews.Az

By Alimat Aliyeva

Shares of Xiaomi Corp. fell by 5.5% during Tuesday's auction in Hong Kong following reports of an accident involving one of the company's electric vehicles equipped with a driver assistance system, Azernews reports.

Xiaomi confirmed on the Weibo social network that the SU7 electric car was involved in an accident on March 29 on an expressway in Anhui Province. The official statement did not specify whether there were any casualties, but Chinese media reported that three people died in the crash.

The company stated that the police are investigating the circumstances of the incident. According to the preliminary report, the driver assistance system had been activated less than 20 minutes before the accident and had repeatedly warned the driver to take control of the steering wheel. A few seconds after the driver regained control, a collision occurred.

Local media reported that after the impact, the electric car caught fire, with most of the vehicle’s body being destroyed.

Experts have raised concerns about the safety of autonomous driving technologies in light of the incident.

In 2024, shipments of Xiaomi SU7 Series electric vehicles totaled 136,854 units. In March, the company raised its forecast for 2025 from 300,000 to 350,000 vehicles.

The incident highlights growing concerns about the safety of semi-autonomous driving systems, which are becoming more common in modern electric vehicles. While Xiaomi has been making strides in the EV market, this accident could impact consumer confidence in the company’s technology, particularly as it competes with other major players like Tesla and BYD.

This event also underscores the need for more stringent testing and regulatory oversight of driver assistance and autonomous driving technologies. As companies rush to bring self-driving cars to market, such incidents may become increasingly common, prompting regulators to revisit safety standards and testing protocols.

In the context of Xiaomi's broader ambitions, the company has been aiming to expand its footprint in the electric vehicle market, alongside its dominance in smartphones and consumer electronics. Despite this setback, Xiaomi's decision to raise its 2025 forecast suggests that it remains optimistic about the future of its electric vehicle business. The incident, however, may lead to increased scrutiny from both regulators and consumers, which could have long-term implications for Xiaomi's brand and market share.