Xiaomi SU7 EV accident in China kills three as smart driving tech engaged, car bursts into flames

Xiaomi Corp. confirmed that one of its SU7 electric vehicles was involved in an accident on an expressway in China. Local media reported that three people died in the incident that’s likely to spark scrutiny over the smart driving software deployed in many of today’s cars.The technology giant’s stock fell as much as 6.1% in Hong Kong. The shares have slumped almost 18% since Xiaomi raised about $5.5 billion in an equity sale last week to help fund an expansion of its EV business.

“Investors might have concerns over Xiaomi’s competitiveness and growth outlook after reports of the car accident,” Shen Meng, director at Beijing-based investment bank Chanson & Co., said. The completion of the share sale has “also weighed on sentiment.”
Police arrived at the scene immediately and are now investigating the accident, which occurred on an expressway in Anhui province on March 29, Xiaomi said in a post on its Weibo account. Xiaomi’s statement didn’t include any details on fatalities or injuries, and representatives from the company didn’t immediately respond to additional questions.
According to Xiaomi’s initial report, the car’s advanced driver assistance function had been engaged less than 20 minutes before the crash. Alerts were issued because the driver apparently wasn’t holding on to the steering wheel. Seconds after another warning was sent about obstacles in the road and the driver then retook control of the wheel, the crash happened.The EV was engulfed in flames after the impact, with only some parts of the car, like the steel chassis, remaining in the fiery aftermath, according to local media.

The rollout of advanced driver assistance technology, which still requires drivers to keep their hands on the steering wheel and stay alert to surrounding traffic, has led to concerns that some people are placing too much faith in the technology and not paying attention to the road.

Tesla Inc. has faced several probes in the US into whether its partial-automation system marketed as Full Self-Driving is defective after multiple crashes, one of which resulted in a fatality.

The US automaker has also been involved in high-profile accidents in China, including one in 2021 when the owner of one of its cars jumped on top of a display vehicle at the Shanghai auto show and yelled that members of her family almost died because the car’s brakes failed.

Xiaomi, better known for its smartphones, has had instant success with its move into EVs, last month raising its 2025 sales target to 350,000 units.