Following the official launch of the Xiaomi car last week, it quickly became a top contender among domestic electric vehicles, amassing over 50,000 orders in just half an hour. However, a wave of cancellations and "accidental" order locks emerged shortly after, thrusting Xiaomi into the spotlight once again.
As of April 2, the cancellation rate for the Xiaomi SU7 had exceeded 40%, a result of multiple factors. On one hand, Xiaomi's current production capacity is relatively low. Apart from the first 5,000 units of the Founders Edition, which can be delivered within a week, the earliest deliveries require 20-23 weeks, or 5-6 months. For those who ordered the MAX version, the wait extends beyond seven months. Placing an order at the beginning of the year and receiving the car at the end's end has undoubtedly dampened many people's desire to purchase.
Moreover, a surge of customers flooding into Xiaomi stores for inquiries and purchases in a short period has completely overwhelmed the stores' normal operations. The influx of orders, inquiries, and cancellations has prevented the staff from providing adequate service, leading many frustrated customers to cancel their orders after unsuccessful consultations.
Nevertheless, not all news regarding Xiaomi cars has been negative. Xiaomi has currently locked in orders for 40,000 vehicles, indicating a minimum production of 40,000 units. This number far exceeds Xiaomi's current production capacity. Xiaomi has repeatedly emphasized that they are in contact with suppliers up and down the supply chain, striving to increase production capacity.
The stock market outlook for Xiaomi cars is also quite positive. Despite the recent surge in cancellations making headlines, Hong Kong's stock market firmly supported Xiaomi after a four-day closure, with Xiaomi Group's pre-market stock price soaring by 15%. The Hang Seng Tech ETF (513260), heavily influenced by Xiaomi, also experienced a rise. This indicates that investors are confident in Xiaomi, even if it currently faces production capacity issues.
