Xiaomi customers who ordered the new YU7 electric SUV are now facing delivery delays of up to 60 weeks, leading to hundreds of complaints and refund requests.
The company received around 240,000 orders for the YU7 within 18 hours of its launch last Thursday. However, only a limited number of vehicles were available for immediate delivery. By Tuesday, the Xiaomi app showed estimated wait times ranging from 38 to 60 weeks.
More than 400 buyers have filed complaints on Sina’s Black Cat consumer platform, saying they were not told about the long wait times before paying a non-refundable deposit of 5,000 yuan, or about $698. Customers said the app displayed delivery times only after confirming their orders.
Some also raised concerns that delays could make them miss out on current tax exemptions for electric vehicles, which expire at the end of the year.
Xiaomi CEO Lei Jun, who has 26.8 million followers on Weibo, said he would respond to questions about the YU7 launch during a livestream on Wednesday.
The YU7 is Xiaomi’s second vehicle and starts at 253,500 yuan, about 4% cheaper than Tesla’s Model Y, China’s best-selling SUV. Xiaomi has openly positioned the YU7 as a competitor to the Model Y.
The company’s first electric car, the SU7 sedan, launched in March last year. Early buyers faced wait times of up to seven months, but the car has since outsold Tesla’s Model 3 in China on a monthly basis since December.
Xiaomi is also managing fallout from a fatal crash involving an SU7 in March, which has added to criticism over delivery issues and unclear optional features.
To meet rising demand, Xiaomi has increased monthly output at its Beijing plant from 4,000 units in March last year to 28,000 units in May. It also plans to build new factories on two nearby plots of land.
