Xiaomi to update driver-assist system after recalling 116K SU7 EVs

Xiaomi Corp., a Chinese multinational technology company, plans to release an over-the-air software update for its SU7 electric vehicles. This update aims to fix a flaw discovered in its advanced driver assistance technology in around 40% of the SU7 electric sedans it sold. 

To completely address this issue, the tech company, popularly known for its smartphone and electric vehicles manufacturing, will recall approximately 116,800 standard versions of the SU7. Notably, almost all these vehicles were manufactured between February 6, 2024, and August 30, 2025.

However, like most tech systems, the car’s driver assist system has a defect. In a notice posted on the State Administration for Market Regulation’s website on Friday, September 19, the regulator pointed out that there is a likelihood that the system might not effectively detect and alert drivers in the event of a crisis. This has raised worries as it could lead to serious accidents if drivers do not regain vehicle control. 

Xiaomi’s SU7 sedan encounters a tragic accident amid a tech defect

On March 28, 2024,  Xiaomi launched the Xiaomi SU7, its first EV model. In July this year, the tech company sold out about 305,055 SU7 models. During its sale, people noticed that the standard version did not come with lidars, a sensing technology that helps vehicles to observe the surroundings and offer extra safety accurately.

Following this, recent reports revealed that Xiaomi’s stock in Hong Kong drastically decreased close to 2% but later rebounded, ending the day down by 1.1%. The shares, however, have surged by 64% since the beginning of the year.

Gary Tan, a fund manager at Allspring Global Investments LLC, commented on the topic of discussion. He said the market response to the situation was calm because EV buyers do not consider assisted driving a crucial selling feature for the SU7. 

This is because in the Chinese competitive electric vehicle market, its consumers view assisted driving features as more of a “nice-to-have” rather than an essential factor.

Concerning Xiaomi’s recall, the event happened about six months after a fatal accident involving a regular SU7 sedan with its autopilot feature activated, which led to three fatalities.

This incident triggered the Chinese authorities to restrict the use of advanced driver assistance technology and engage themselves in assessing EV designs of other parts, including door handles that are set back into the body. 

To illustrate the seriousness of the situation, reliable sources have highlighted that Beijing is currently establishing regulations that clearly detail what driver-assist technologies are allowed and not allowed to do.

Tech analysts urge companies to take measures into account of a rising issue

In its official EV Weibo account, Xiaomi mentioned that its upcoming over-the-air update will focus on strategies to improve how its vehicles adjust their driving speed in the case of a tricky situation, such as nighttime driving or rain.

However, Kelvin Lau, an analyst at Daiwa Capital Markets (Hong Kong) Ltd., urged that a physical recall may not be a suitable solution to fix the problem. According to him, the problem can be fixed remotely. The analyst made this remark after pointing out that the issue was not mechanical and the cost was low.

In the meantime, it is worth noting that apart from Xiaomi, other car manufacturers have had similar recalls, according to reports from analysts led by Steven Leung, an executive director at UOB Kay Hian Hong Kong Ltd. Based on their analysis, they stressed that tech companies should resolve rising issues before any tragic accident occurs.

Despite the recent issues, Xiaomi revealed plans to take on Tesla and BYD in the European EV market by 2027. As earlier reported by Cryptopolitan, this came after an increase in sales in Q2 2025. Xiaomi’s President, Lu Weibing, said the firm’s business model in China could be applied globally, including in Europe.

According to President Lu, the company’s quarterly revenue rose by over 30%, leading to its second EV’s stellar performance, which was launched during the summer. He said that this helped counter dwindling smartphone demand. Still, Lu pointed out that the firm was still researching European expansion to prepare for the 2027 entry. Xiaomi delivered more than 81K cars in Q2 2025 to set a new quarterly record; however, it is still struggling to meet the local demand.

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