Xiaomi's Shares Fall on Higher Price Tag of New SU7

By Jiahui Huang

Xiaomi's shares fell after it unveiled a higher-than-expected price tag for its new SU7 model at a time when the world's largest auto market is facing slowing demand.

Shares fell 6.5% to 33.96 Hong Kong dollars, equivalent to US$4.34, early Friday in Hong Kong, outpacing the benchmark Hang Seng Index's 0.75% decline.

Xiaomi released its new SU7 model on Thursday, with a starting price of 219,900 yuan, 4,000 yuan higher than the first-generation SU7.

"Price hikes with refreshes are rare in China's highly competitive auto market, though more automakers may follow if the SU7's revised pricing proves successful amid rising bill of materials cost pressures," Bernstein analysts said in a note.

The new model offers a longer driving range of about 900 kilometers, faster charging, and new car interiors.

Xiaomi said it locked 15,000 orders in 34 minutes. However, this was far below the 200,000 refundable orders in three minutes received for the YU7, Xiaomi's mid-sized SUV.

The stock's decline is also likely because investors don't see much difference between the new SU7 model and the old version, CCB International analyst Qu Ke said.

"If you drive the new SU7 model on the road, probably others wouldn't see an immediate difference from the old version," he said.

Xiaomi's chief executive Lei Jun said Thursday that the company plans to invest a total of 60 billion yuan in AI-related research and development as well as capital expenditure over the next three years.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

March 19, 2026 23:34 ET (03:34 GMT)