Can Western Buyers Trust Xiaomi EVs? Lei Jun Fights Back Against China’s Trust Crisis

Is the hype over? For Western investors and consumers watching the rapid expansion of the Chinese EV sector, the turbulent journey of Xiaomi Automotive raises a critical question: Can we trust the new digital-native automakers? The company, led by tech titan Lei Jun, has delivered an impressive 2025 sales performance of over 410,000 vehicles, yet this success is currently overshadowed by a significant ‘trust crisis’ at home. Lei Jun’s recent, highly public car-dismantling livestream was a direct, high-stakes attempt to quell doubts, signaling that for Xiaomi, this battle is now about reputation as much as revenue.

This is not just domestic drama; for the global market, Xiaomi’s experience is a crucial case study on the pitfalls of crossing over from consumer electronics to complex, safety-critical industries like automotive.

The Collapse of Initial Goodwill: From ‘Fan Faith’ to Scrutiny

Lei Jun’s initial entry into auto manufacturing leveraged his immense personal brand, the ‘Mi-Fan’ base, and a promise to stake his entire reputation on the venture, effectively bypassing the years of trust-building most EV startups struggle with. This momentum carried the SU7 to massive initial demand, with livestream events drawing tens of millions of viewers.

However, as volume increased, so did scrutiny, leading to several high-profile controversies:

• Safety Incidents: A fatal high-speed crash involving the SU7 sparked national debate and regulatory attention on EV safety standards.
• Marketing Misrepresentation: Owners complained that the ¥42,000 optional carbon fiber hood on the SU7 Ultra lacked the advertised track-level dual air ducts for cooling, leading to legal action and claims of false advertising.
• Performance Disputes: An over-the-air (OTA) update controversially limited the top-tier model’s horsepower, contradicting initial marketing that touted it as the ‘fastest four-door production car on earth.’

The result? New SU7 orders reportedly plunged by 55% in April following the initial crash, demonstrating how quickly consumer confidence can erode when marketing promises clash with real-world performance or safety perception.

Lei Jun’s ‘Back-to-Basics’ Response: Transparency Over Silence

In response to what he called the ‘most difficult period’ for the company, Lei Jun shifted strategy. Instead of maintaining a low profile, he hosted a lengthy live teardown of a vehicle to physically demonstrate build quality and address core fears, such as the door handles failing in an emergency—which they demonstrated were protected by triple power redundancy. This move suggests Xiaomi understands that in the EV world, transparency about engineering is the new currency.

Key takeaways from Lei Jun’s defense:

• He explicitly countered the narrative that design aesthetics trumped safety, reaffirming that “safety is the foundation” of their philosophy.
• The company is committing to meeting or exceeding industry safety standards, recognizing society now expects ‘industry leader’ responsibility.
• He welcomed objective, third-party teardowns, attempting to shift the conversation from online critique to engineering proof.

Implications for Western Investors and Buyers

For Western observers, Xiaomi’s growing pains offer vital insight into the maturation of China’s EV landscape:

1. The Tech vs. Auto Divide: Software-first companies often underestimate the complexity of automotive manufacturing, especially concerning immediate physical safety and hardware execution—a cautionary tale for any Big Tech firm looking to enter the sector.
2. The Speed of Backlash: The swift drop in sales post-controversy shows that even massive brand loyalty can’t cushion a new automaker from credibility hits in China’s hyper-competitive environment. See our analysis on China’s evolving EV regulation landscape for context.
3. The Personal Brand Risk: Lei Jun tied his personal brand directly to the vehicle’s success. While this accelerated launch, it also centralized the reputational risk onto one individual, forcing him into the unprecedented position of consumer-facing engineer.

While Xiaomi delivered over 410,000 units in 2025, their path forward hinges entirely on whether Lei Jun can successfully transition from hype-master to trusted engineer. The market will judge not just their next car, but whether they can genuinely institutionalize transparency.

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