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Tragic Crash Involving Xiaomi EV in China Raises Concerns Over Driver Assistance Technology

Three fatalities reported after Xiaomi’s SU7 electric vehicle involved in crash, sparking scrutiny of smart driving software.

On April 1, Xiaomi Corp confirmed that one of its electric vehicles, a standard version of the SU7, was involved in a fatal accident on an expressway in China. The crash, which occurred on March 29 in Anhui province, resulted in three fatalities and has raised serious questions regarding the safety of advanced driver assistance technologies in vehicles.

The incident occurred while the car’s driver assistance system was engaged, with the vehicle reportedly in Navigate on Autopilot mode. The driver was warned multiple times, including one alert indicating that the driver wasn’t holding the steering wheel. Shortly after, another alert warned of obstacles on the road. The driver regained control but shortly afterwards the car crashed into a concrete barrier. Following the impact, the vehicle was engulfed in flames, leaving only parts of the chassis intact.

This tragic accident has caused Xiaomi’s stock to drop by 5.5%, compounding the company’s recent financial challenges. Xiaomi’s move into the electric vehicle market had been seen as a promising expansion for the tech giant, especially after raising around US$5.5 billion to fund its EV business. However, the crash has triggered investor concerns regarding the future of Xiaomi’s competitiveness in the EV market.

Xiaomi has stated that its advanced driver assistance system, which offers functions like lane changes, speed adjustments, and braking, was engaged shortly before the crash. However, the company also reminded customers that while this system offers smart driving capabilities, it is not the same as autonomous driving. Drivers are still required to remain alert and in control, as per Chinese law, which prohibits taking hands off the wheel when such systems are engaged.

The incident also sheds light on broader concerns regarding the use of such technologies in modern vehicles, with industry experts drawing parallels to Tesla’s Full Self-Driving system, which has also faced scrutiny following various crashes. Other Chinese EV manufacturers, such as Xpeng and BYD, are also working on similar driver assistance technologies, prompting concerns over the extent to which drivers rely on these systems.

Xiaomi has yet to disclose specific details about the vehicle’s components, but battery manufacturer Contemporary Amperex Technology Co Ltd confirmed that the car involved did not use its batteries. Battery-related fires in EVs have been a persistent issue, with other manufacturers like Nio and BYD recalling vehicles due to similar concerns.

This tragic incident may hinder Xiaomi’s ambitious EV goals, as the company had recently increased its 2025 sales target to 350,000 units. As investigations into the cause of the crash continue, the spotlight on the safety and reliability of driver assistance technology in electric vehicles is only expected to grow.

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