Prospective and current owners of the Xiaomi SU7 Ultra are facing pushback from the automaker as they seek refunds and compensation over alleged false advertising related to the vehicle’s carbon fibre hood. The controversy centres on the optional 42,000 RMB (5,800 USD) carbon fibre “dual-duct” front hood, which buyers claim is primarily decorative rather than functional as advertised.

Following the eruption of the issue, multiple owners and pre-owners formed rights protection groups, accusing Xiaomi of misleading advertising and demanding vehicle returns and deposit refunds.

In response to pre-orders requesting cancellations, Xiaomi Auto has reportedly begun sending messages stating that their orders will not proceed with production. The messages inform customers that their estimated delivery times are no longer valid. Customers wishing to proceed with their purchase must contact Xiaomi within 60 days to arrange continued production. Xiaomi will discuss order cancellation and related matters if no contact is made within this period.

A lawyer cited in reports suggests this action may constitute a breach of contract, and the “60-day cooling-off period” clause could be invalid. The lawyer believes consumers may be entitled to terminate the contract and demand a double deposit refund. Additionally, compensation could be sought based on the 42,000 RMB (5,800 USD) option price, the 20,000 RMB (2,800 USD) deposit, and potential losses in the vehicle’s used value.

Xiaomi had previously issued an apology on May 7th and offered a solution: undelivered orders could switch back to an aluminium hood, while owners and locked-in buyers who kept the carbon fibre hood would receive 20,000 points (worth approximately 2,000 RMB or 280 USD). This offer did not include vehicle refunds and was not accepted by the owners.

More recently, an owner representative reported a lengthy meeting with Xiaomi Auto Vice President Li Xiaoshuang and the Sales and Delivery Service Department General Manager. While described as a “beneficial” and “frank” exchange that improved understanding, the meeting did not result in a final resolution. The owner representative claimed Xiaomi admitted to issues in their advertising but stated that allowing user refunds would cause Xiaomi Auto to “collapse.” However, Vice President Li Xiaoshuang later denied making such a statement, calling the reports false.

The owner group, now exceeding 70 members, plans to file a joint lawsuit against Xiaomi Auto for false advertising, seeking compensation under the “refund one, compensate three” principle.