Xiaomi To Compensate The Owner Of A SU7 Ultra model Because Of A Hood Issue

Xiaomi is enjoying the success of its SU7 and YU7 electric cars, but since mid-year, it has faced legal issues over a controversial carbon fiber hood for the SU7 Ultra.

What was once viewed as a performance upgrade has become a lesson in customer trust. The hood, marketed for its air channels to improve cooling, turned out to be purely decorative. Owners were disappointed to find that the vents had no impact on airflow.

Shortly after news of customer concerns spread, one owner sued the Chinese brand, claiming that Xiaomi had engaged in false advertising.

Customers paid 42,000 yuan ($5,800) for a carbon fiber hood, only to find that its internal structure was nearly identical to a standard aluminum hood. The Suzhou court in Jiangsu province upheld the ruling in favor of the SU7 Ultra owner and rejected Xiaomi’s appeal.

The consumer electronics giant will now have to return the 20,000 yuan ($2,800) deposit the owner gave for the hood, pay 126,000 yuan ($17,640) in damages, and cover legal costs of 10,000 yuan ($1,400).

While these figures are just a drop in the ocean for a company like Xiaomi, they will undoubtedly face new payouts in the future.

The case in question was not a class action and involved only one owner. Therefore, it is likely that other owners who paid for the expensive carbon fiber hood will also sue Xiaomi after this ruling.

When the dispute first came to light, Xiaomi apologized, insisting that the hood’s purpose was aesthetic, not functional, and that it was meant to reflect the design of the record-breaking SU7 Ultra prototype.

To appease upset customers, the company offered 20,000 Xiaomi reward points, valued at about 2,000 yuan ($280), to each hood owner. It’s unclear if this will prevent further legal action.

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