If 2025 marked a year of turbulence for Lei Jun and Xiaomi's automotive venture, then 2026 may prove decisive in determining whether they can stage a remarkable comeback. Facing a perfect storm of public image crises, product quality concerns, and ineffective marketing strategies, Lei Jun's car-making dream found itself in the eye of the storm. Yet, recent developments suggest a potential shift in public perception. What lies behind this change, and how will Xiaomi Auto navigate the increasingly competitive market?
Lei Jun's 2025: From Tech Icon to Controversy Magnet
Looking back at 2025, Lei Jun and Xiaomi Auto endured four major controversies that threatened to dismantle years of carefully cultivated goodwill:
- The SU7 Accident and Communication Crisis: In March 2025, a severe accident involving an SU7 resulted in multiple casualties. Xiaomi's delayed response—remaining silent for 72 hours—was widely criticized as insensitive. When the company finally addressed the incident, its technical-focused explanation lacked appropriate acknowledgment of the human tragedy, casting a shadow over the brand.
- SU7 Ultra's Performance Claims Controversy: The vehicle's advertised 1548 horsepower was only achievable in track mode, with daily driving limited to 900 horsepower. Additionally, the carbon fiber hood's internal structure appeared identical to standard models. These discrepancies led to a class-action lawsuit demanding compensation, but Xiaomi's offer of approximately $280 in credits only exacerbated consumer frustration.
- The Failed "Hardship Narrative": During his annual September speech, Lei Jun attempted to evoke sympathy by comparing Xiaomi's automotive and semiconductor ventures to "putting two children through college simultaneously." The emotional appeal backfired, with critics questioning why a billionaire entrepreneur would employ such tactics.
- "Fine Print" Marketing Backlash: Xiaomi's smartphone advertising campaign for the 17 series featured prominent claims with critical disclaimers in barely legible text, eroding consumer trust and damaging Lei Jun's reputation as a marketing visionary.
2026: Signs of a Potential Turnaround
Just as observers began writing off Xiaomi Auto's prospects, a subtle shift in public opinion emerged. As 2026 approaches, numerous automotive reviewers and owners have begun sharing videos demonstrating the SU7's impressive accident-avoidance capabilities. These authentic testimonials appear more convincing than corporate messaging.
One social media comment captured the sentiment: "Xiaomi's biggest mistake was putting a high-performance vehicle in the hands of inexperienced drivers." Others shared personal accounts of the SU7 preventing accidents, dubbing it the "indestructible legend."
This organic support from users has helped stabilize Lei Jun's public image, with his social media following showing signs of recovery after months of decline.
Three Factors Behind the Shift
Xiaomi Auto's improving reputation stems from several key developments:
- Time Mitigates Emotion: The SU7 accident has receded from public memory as newer stories dominate attention spans.
- Performance Validates Product: Despite controversies, SU7 deliveries remained strong, suggesting consumers recognize its technical merits. Advanced driver-assistance systems and ecosystem integration continue to differentiate Xiaomi's offerings.
- New Product Pipeline: Reports indicate Xiaomi plans to launch at least four new models in 2026, spanning both pure electric and extended-range configurations, reigniting market anticipation.
2026 Product Strategy: Systematic Expansion
Xiaomi Auto's ambitious product roadmap signals its transition from single-product focus to comprehensive market coverage:
- SU7 Refresh: Scheduled for mid-2026, the updated model will feature a 900V platform with ultra-fast charging, delivering 80% charge in 12 minutes. Enhanced comfort features including zero-gravity seats and improved suspension aim to broaden its family appeal, though likely at a higher price point.
- SU7 Executive Edition: Targeting the luxury segment with a 5.2-meter wheelbase, premium rear-seat amenities, and business-focused features, this model will challenge established players like Mercedes-Benz and Porsche in the $60,000-$70,000 range.
- Extended-Range SUV: Codenamed "Kunlun," this seven-seater addresses range anxiety with a large battery supporting 400-500 km electric range, competing directly with popular family SUVs. A five-seat variant is also planned for late 2026.
Lei Jun has acknowledged: "After 15 years, Xiaomi no longer enjoys beginner's protection in any industry." The 2026 lineup represents the company's entry into mature, fierce competition.
Persistent Challenges
Despite encouraging signs, Xiaomi Auto faces three critical tests:
- Rebuilding Quality Trust: Last year's controversies left lasting doubts. With multiple new launches planned, any quality issues could trigger renewed backlash.
- Intensifying Competition: The 2026 market will see traditional automakers accelerating electrification while EV specialists strengthen their positions. Xiaomi must differentiate itself across multiple segments simultaneously.
- Brand Positioning: Simultaneously targeting premium and mass markets risks diluting brand identity. Clear product differentiation will be essential to avoid being perceived as neither truly premium nor sufficiently affordable.
Lei Jun has initiated transparency efforts, including postponed vehicle teardown livestreams meant to showcase build quality. Independent analyses have praised Xiaomi's material selection and craftsmanship, potentially aiding reputation recovery. The market's response to these initiatives will prove decisive in determining whether 2026 becomes Xiaomi Auto's redemption year or confirms its struggles.