Xiaomi’s newly launched YU7 electric SUV has received over 400 complaints after the company revealed delivery times of up to 60 weeks.

The car saw a surge of 240,000 orders within 18 hours of its May 22, 2025 release. However, only a limited number of units were available for immediate delivery.

Most buyers now face wait times between 38 and 60 weeks, according to Xiaomi’s app.

Customers had to pay a non-refundable deposit of 5,000 yuan (US$698) to place their orders.

Buyers reported on Sina’s Black Cat platform that they were not informed of the long wait times beforehand. Some also raised concerns about potential price hikes if EV tax exemptions expire by year-end.

Xiaomi has not responded to the complaints, but CEO Lei Jun said he would address the issue.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ China’s NEV tax policy creates urgency around delivery delays

The long delivery wait for Xiaomi’s YU7 intersects with China’s changing NEV tax incentive structure, creating financial uncertainty for buyers.

Customers who ordered the vehicle expecting delivery in 2025 may now receive it in 2026, when the tax exemption drops from RMB 30,000 ($4,170) to just RMB 15,000 ($2,078) according to China’s extended NEV tax policy that runs through 20271.

This timing creates a significant financial penalty for buyers caught in the delay, effectively increasing their total purchase cost despite locking in the original vehicle price.

The standard vehicle purchase tax in China is 10% of the vehicle’s value, making these exemptions a substantial factor in purchase decisions for price-sensitive consumers2.

Xiaomi’s required non-refundable deposit of 5,000 yuan ($697) further complicates the situation for buyers who might prefer to cancel and look elsewhere.

2️⃣ Production scaling challenges persist for tech companies entering EV market

Xiaomi’s production-demand mismatch highlights the persistent challenge tech companies face when transitioning to automotive manufacturing.

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