TLDRs;
- Xiaomi stock fell 5.71% on October 13 following reports of a fatal SU7 EV crash in Chengdu, China.
- Emergency responders struggled to open electronic doors after the vehicle caught fire, trapping the driver inside.
- The incident intensifies scrutiny of concealed door handle designs used across the electric vehicle industry.
- Chinese regulators are drafting standards requiring mechanical backup systems for hidden door handles by July 2027.
Xiaomi Corporation experienced a significant market setback on Monday as investor confidence wavered following disturbing reports from Chengdu, China.
The company’s Hong Kong-listed shares tumbled as much as 5.71% after video footage and news reports emerged showing bystanders desperately attempting to extract a trapped occupant from a burning Xiaomi SU7 electric vehicle.
Deadly Incident Sparks Market Reaction
The accident occurred in the early morning hours of October 13, when a Xiaomi SU7 was involved in a high-impact collision that resulted in a fire.
Witness videos circulating on Chinese social media platforms captured the harrowing scene of multiple individuals struggling unsuccessfully to open the vehicle’s doors while flames engulfed the car. According to National Business Daily, at least one person remained trapped in the driver’s seat during the emergency.
Local authorities have yet to release official casualty figures or provide detailed information about the circumstances surrounding the crash. However, the visual evidence has already sparked widespread public concern about the safety mechanisms built into modern electric vehicles, particularly those featuring electronically operated door systems.
Growing Pattern of Safety Questions
This marks the second major safety incident involving Xiaomi’s flagship SU7 model in recent months. The company previously recalled nearly 117,000 SU7 vehicles in September after a fatal accident raised questions about the effectiveness of its driver-assistance technology.
That recall affected units manufactured between February 2024 and August 2025, with Xiaomi addressing software deficiencies through over-the-air updates.
The recurring nature of these incidents presents a mounting challenge for Xiaomi as it attempts to establish credibility in the competitive electric vehicle market. The company, traditionally known for consumer electronics and smartphones, launched its automotive division with considerable fanfare but now faces the harsh scrutiny that comes with vehicle safety failures.
Electronic Door Systems Under Review
The Chengdu incident has brought renewed attention to the electronic door handle systems increasingly common in premium electric vehicles. While Xiaomi’s SU7 includes mechanical emergency release mechanisms in each door that function without electrical power, these backup systems can become ineffective when severe crash damage deforms the door frames and jams the latching mechanisms.
The vehicle’s safety features include automatic lock releases triggered by airbag deployment, designed to facilitate emergency egress. However, the extent of structural damage in high-speed collisions can override these protections, leaving occupants vulnerable even when multiple safety layers exist.
Industry analysts note that Xiaomi store representatives have acknowledged limitations in the SU7’s Automatic Emergency Braking system, admitting the feature rarely activates at speeds exceeding 80 kilometers per hour. While the company has stated that current software builds can reduce speed by up to 70 km/h from 130 km/h, with plans for a full-stop capability at 135 km/h through future updates, these specifications fall short of initial performance claims made during the vehicle’s launch.
Regulatory Response Gaining Momentum
Chinese automotive regulators are responding to these safety concerns with proposed standards specifically targeting fully concealed door handle designs.
Draft regulations currently under consideration would mandate that all hidden door handle systems include mechanical release options that remain functional during complete power loss. If approved, these requirements would take effect in July 2027.
The proposed standards would likely accelerate a shift toward semi-concealed handle designs that maintain the aerodynamic benefits of flush profiles while incorporating accessible physical backup mechanisms.
