A Chinese court has rejected Xiaomi Auto's appeal in a consumer protection case, solidifying a ruling that could cost the company over 156,000 yuan per affected customer.
The Suzhou Intermediate People's Court upheld the original decision requiring Xiaomi Auto to refund a customer's 20,000 yuan deposit, pay 126,000 yuan in damages (triple the accessory cost), and cover 10,000 yuan in legal expenses, as reported by Autohome.
The Core Issue
The lawsuit centers on marketing claims for the SU7 Ultra's carbon fibre vented hood, sold as a 42,000 yuan upgrade. Xiaomi advertised the component as featuring a "replicated prototype dual-duct design" that would direct airflow to wheel hubs for enhanced heat dissipation.
After taking delivery, the customer discovered the premium hood functioned identically to the standard aluminium version. Detailed inspection showed nearly identical internal construction, with only a minimal 1.3-kilogram weight advantage—far from the advertised cooling benefits.
Failed Settlement Attempts
In May, Xiaomi attempted to resolve the controversy by offering two options: allowing undelivered customers to switch back to aluminium hoods, or providing 20,000 loyalty points (valued at 2,000 yuan) to customers who had already received their vehicles.
Neither solution satisfied affected buyers, prompting legal action. The initial court ruled in the consumer's favour, a decision Xiaomi challenged unsuccessfully at the appellate level.
The judgment sets a concerning precedent for the automaker, as the substantial compensation formula could apply to other customers who purchased the disputed component.
Xiaomi Loses Carbon Fibre Hood Lawsuit, Faces Significant Damages
