Xiaomi Responds to Pengcheng's First Crash: Can Extended-Range Vehicles Become the Sales Savior?

Deep News
Yesterday

On the evening of September 8, a Xiaomi Pengcheng vehicle mounted a roadside green belt while making a turn at an intersection, with related footage spreading rapidly across social media and sparking widespread discussion. The following day, the "Xiaomi Rumor Debunking" account issued an urgent statement clarifying that a test-driving customer, while yielding to a vehicle ahead during a turn, mistook the accelerator for the brake due to nervousness, inadvertently driving off the roadway, with no injuries reported.

Just two days prior, at Xiaomi's autumn flagship new product launch event, the highly anticipated Xiaomi Pengcheng series extended-range SUV was officially unveiled, with starting prices for the four variants ranging from 209,900 to 299,900 yuan. The Pengcheng series marks Xiaomi's first foray into the extended-range SUV segment, and among the four models, the entry-level N70 Pro stands as the most affordable vehicle in Xiaomi's current lineup. Following the official release of the Pengcheng series, locked orders surpassed 10,000 units within just four minutes.

According to data from the China Passenger Car Association, Xiaomi's monthly vehicle sales in August reached 30,153 units, marking the lowest level since April this year. Over the first eight months of 2025, cumulative sales totaled 246,000 units, less than half of this year's 550,000-unit sales target. However, some analysts believe that with the launch of the Pengcheng series, Xiaomi may still have a viable path toward achieving its full-year sales goal.

"First Crash" One Day After Pengcheng's Launch? Customer Mistakenly Steps on Accelerator During Test Drive

On the evening of September 7, Xiaomi held its autumn flagship launch event in Beijing, where Lei Jun unveiled four new vehicles in one go: the Pengcheng N70 Pro, N70 Max, N90 Max, and the brand-new N90 Max Explorer Edition, priced between 209,900 and 299,900 yuan. Yet just a day after the official launch, footage of a Pengcheng test vehicle climbing onto a green belt flooded the internet. At the time, netizens spotted a Xiaomi Pengcheng vehicle veering straight off the roadway and onto the green belt during a turn.

According to Phoenix New Media Technology, another dashcam video matching the scene showed the accident vehicle, while turning, encountering a vehicle ahead and then heading directly toward the roadside sidewalk, coming to a stop only after mounting the green belt, with no pedestrians harmed throughout. As the footage spread online, the topic "Pengcheng's First Crash" quickly surged to the top of Weibo's hot search list, drawing intense discussion. In the early hours of September 9, the "Xiaomi Rumor Debunking" Weibo account responded urgently, stating that a customer, while test-driving and yielding to a vehicle ahead at an intersection, mistook the accelerator for the brake due to nervousness, inadvertently leaving the roadway, with no injuries during the incident, urging the public to be aware and reassured.

Notably, the "Xiaomi Rumor Debunking" account was officially launched on June 30, established under the guidance of the Central Cyberspace Administration's Reporting Center for Illegal and Harmful Information. The account primarily serves as a channel for the public to verify and review Xiaomi's clarification statements and to report clues about various rumors concerning the company. Xiaomi has also pledged to continue engaging with all parties through this account while persistently using legal measures to protect its legitimate corporate reputation. Shortly after its establishment, the account became deeply involved in debunking rumors related to the Pengcheng series.

Back in July this year, when Xiaomi's new series "SkyNomad Pengcheng" had begun promotional efforts but had yet to officially launch, some netizens searching for "SkyNomad" across multiple platforms encountered related terms such as "cause of fire" and "accident details." Some platforms even displayed "crash videos" of the Xiaomi Pengcheng, with posters jesting that a newly purchased Xiaomi SkyNomad had again ended up on a green belt, though screenshots clearly showed visible AI-generated watermarks on the footage. Some of these videos can no longer be viewed. In response, "Xiaomi Rumor Debunking," between July and August, repeatedly reposted reports and statements from Beijing Daily and "Xiaomi Spokesperson," pushing back against AI-fabricated rumors surrounding the Pengcheng series.

Pengcheng Surpasses 10,000 Locked Orders in 4 Minutes, Xiaomi Fires First Shot in Extended-Range Battlefield

As the first extended-range SUV product line from Xiaomi Automobile, the Pengcheng series carries significant expectations from the company, with Lei Jun even updating his social media profile photo to an image of himself seated inside a rooftop tent mounted on a Xiaomi Pengcheng vehicle. According to Tianyancha data, since 2022, Xiaomi has progressively applied to register a substantial number of "Pengcheng" and "SKYNOMAD" trademarks. In March of this year, Xiaomi formally submitted the "Pengcheng" automotive trademark application, entering the preliminary examination stage. By May, low-camouflage road test spy photos of the vehicle were already circulating widely online.

On July 7, Xiaomi Automobile registered official accounts under the names "Xiaomi Pengcheng" for both public accounts and video channels, with the profile image displaying "SkyNomad Xiaomi Pengcheng." A day later, Xiaomi Automobile officially announced the new brand "SkyNomad," meaning "Sky, Nomad," stating that the brand name is associated with "space" and "lifestyle." On July 30, Xiaomi Automobile held its second technology launch event since entering the automotive sector in Beijing, comprehensively sharing details of the Xiaomi Kunlun technology architecture, while simultaneously unveiling two new Pengcheng models at the event.

On the evening of September 7, Lei Jun announced at the autumn flagship launch event that the Xiaomi Pengcheng series vehicles were officially available, introducing four models: the N70 Pro, N70 Max, N90 Max, and N90 Max Explorer Edition. Among these, the N70 Pro's starting price of 209,900 yuan set a record as the most affordable Xiaomi vehicle ever produced; the N70 Max and N90 Max launched at 239,900 yuan and 269,900 yuan respectively, each 20,000 to 30,000 yuan cheaper than their pre-sale prices announced at the July event; and the N90 Max Explorer Edition carried a starting price of 299,900 yuan. Official data shows that the Xiaomi Pengcheng surpassed 10,000 locked orders within just four minutes of launch.

With this impressive performance, Xiaomi has successfully fired its opening salvo in the extended-range SUV arena. For context, in March 2024, when the Xiaomi SU7 was launched, it surpassed 10,000 firm orders in 4 minutes, 20,000 in 7 minutes, and 50,000 in 27 minutes. In June 2025, the Xiaomi YU7 achieved over 200,000 firm orders in 3 minutes, exceeded 289,000 in 1 hour, and locked in more than 240,000 orders within 18 hours of launch.

Extended-Range Vehicles Struggling Domestically, Can Pengcheng Help Xiaomi Make Waves?

In fact, against the backdrop of an overall declining extended-range vehicle market in China, the launch performance of the Xiaomi Pengcheng stands out notably. Data from the China Passenger Car Association shows that in August this year, retail sales of extended-range vehicles in the domestic market reached only 81,000 units, a year-on-year decline of 22.2% and a month-on-month drop of 4.6%, representing merely 11.6% of pure electric vehicle retail sales and 35.8% of plug-in hybrid sales during the same period. Extending the timeline further, over the first eight months of this year, extended-range vehicle retail sales totaled 606,000 units, a decline of nearly 20% year-on-year, accounting for only 13.6% of pure electric vehicle sales and 37.9% of plug-in hybrid sales.

However, when it comes to growth rates specifically, extended-range vehicles have shown impressive performance in the export sector. In the first eight months of this year, extended-range vehicle exports reached 34,000 units, a year-on-year surge of 262.4%. While the absolute volume remains relatively modest, the growth rate far outpaces the 118.5% and 158.4% seen for pure electric and plug-in hybrid vehicles during the same period. Notably, in August alone, the monthly export growth rate for extended-range vehicles reached a staggering 321.3%, substantially exceeding the 144.4% and 164.2% recorded for pure electric and plug-in vehicles respectively.

With domestic auto brands increasingly hoisting the banner of going global, Xiaomi also officially announced its overseas expansion plans earlier this year. At the first-quarter earnings call in May, Lu Weibing, Partner and President of Xiaomi Group, stated that Xiaomi's automotive export plans would proceed according to the pace disclosed at the previous investor conference, targeting an official launch in the third or fourth quarter of 2027. The overall overseas strategy for Xiaomi Automobile follows a sequence of prioritizing developed countries before developing ones, mid-to-high-end segments before mid-range, and right-hand drive before left-hand drive. Currently, the team is actively advancing overseas preparation efforts. Given that automobiles fall under strictly regulated categories involving extensive legal compliance, product localization adaptation, and complex channel and store network deployment, overall progress is proceeding entirely as planned, with further updates to be disclosed at appropriate times.

On September 3, Xiaomi Automobile officially announced its entry into the European market by 2027, signing cooperation memorandums with eight leading German auto dealerships at the 2026 IFA Berlin trade fair. When asked why Europe was chosen as the first overseas stop for Xiaomi's automotive venture, Lu Weibing explained that Europe's exceptionally strong local brands and intense market competition are precisely the core logic behind selecting Europe as the entry point. "If we can achieve success in this market, entering other markets will be relatively easier," Lu noted, revealing that partners have already independently conducted consumer brand surveys for Xiaomi, adding, "It's completely different now, far better than when we were pioneering the mobile phone market."

Worth noting is that in Europe and North America, the culture of camper van and RV travel is exceptionally deep-rooted. According to 2021 statistics, the top four countries in Europe by number of open campsites are France, the United Kingdom, Germany, and the Netherlands. Germany alone has 3,097 open campsites offering more than 200,000 parking spaces, with approximately 1.96 million German households owning their own RVs. The Netherlands, with a land area less than half the size of Chongqing, boasts 2,739 campsites and nearly 90,000 RVs. Some observers suggest that the Pengcheng series' emphasis on lifestyle, spacious interiors, and camper-centric travel features could smooth the path for Xiaomi Automobile's European market entry. For instance, the rooftop tent design featured on models like the Pengcheng N90 Max Explorer Edition could cater to the travel needs of some European vehicle owners.

Nevertheless, Xiaomi Automobile still faces numerous challenges on the financial front. According to Xiaomi Group's latest financial report, in the second quarter of this year, the company's operating losses from its smart electric vehicle and AI and other innovation business segments reached 2.6 billion yuan, compared to 300 million yuan in operating losses in the same quarter last year, representing a more than sevenfold year-on-year expansion of losses. Meanwhile, the gross margin for these segments plummeted from 26.4% in the second quarter of last year to 19.2%. With the official launch of the Xiaomi Pengcheng series, whether the financial performance of Xiaomi's automotive business will see improvement remains to be closely monitored.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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