HONG KONG: Xiaomi Corp. shares dropped as much as 5.7% in Hong Kong on Monday after a local media report over the weekend that said more than 300 people want to cancel their SU7 Ultra electric vehicle orders on "false advertising" about the design of the vehicle's bonnet.
Xiaomi launched the race car version of its SU7 sedan, which starts from 529,900 yuan (RM319,000), earlier this year.
One customisation that's available is a "carbon fibre hood with dual air duct" that costs an additional 42,000 yuan (around RM25,000).
Chief executive officer Lei Jun had promoted the design as not just a change in the car's appearance, but also one that would help ventilate the wheels via the air ducts.
But once the vehicle was delivered, some owners decided to take the bonnet apart.
They alleged that rather than proper air ducts, there were just two holes and some plastic supporting structures.
Apart from that, the design was largely the same as the non-customised version of the Ultra, a report by Chinese media Yicai on May 10 said.
Xiaomi issued an apology for "unclear communication" and said the carbon fibre hood was mostly to replicate the sporty version of the SU7 that was driven at the famed Nürburgring track in Germany and publicised quite broadly in late October.
It offered to change orders that hadn't yet been fulfilled back to the conventional hood or give 20,000 loyalty points to those customers who had already taken delivery.
It also added that the carbon fibre hood does provide some ventilation and heat dissipation for the front of the car.
However, some buyers remained unsatisfied and have started up consumer rights group to petition for a full refund. According to Yicai, the group now has more than 300 people.
It's the latest upset for Xiaomi after a fatal crash involving one of its SU7 sedans killed three people in late March.
The accident brought more scrutiny on the company, and the wider industry, over a range of safety issues around advanced driver assistance, battery stability and recessed EV door handles.
The period has been challenging for Lei personally too. The executive wrote in a social media post on Saturday that "the past month has been the most difficult time" since he founded Xiaomi.
He's taken this time to reflect, by cancelling some meetings and travel plans, according to a post on China's Weibo.
