Lei Jun clarifies price increases for new Xiaomi SU7: "Dozens of technical improvements justify every yuan spent"

During the official live stream dedicated to the new Xiaomi SU7 generation, Lei Jun, Xiaomi Group’s president, addressed the numerous criticisms received regarding the price increase. Accompanied by Xiaomi Auto Vice President Li Xiaoshuang and Public Relations Director Xu Jieyun, the CEO explained in detail the economic and technical reasons behind this decision, responding to the most relevant questions raised in online discussions over the past few weeks. The event was a crucial moment to clarify the company’s strategy and the perceived value associated with the introduced upgrade units.

Product Full of Innovations: The Upgrade Table

The first generation of SU7 experienced significant price hikes: 14,000 yuan for the Standard and Pro versions, 10,000 yuan for the Max. Lei Jun emphasized that these increases reflect the extraordinary scope of the updates implemented.

The new generation introduces an 800V silicon carbide high-voltage platform across all versions—an essential upgrade that enhances energy performance. Additionally, LiDAR is now standard on every configuration, while the driver assistance hardware has been completely redesigned. Lei Jun compared these improvements to the “three main components” restyling in traditional vehicles: structural interventions that justify a substantial qualitative leap.

Beyond technical innovations, the CEO highlighted cost factors within the supply chain. Automotive memory, in particular, has seen soaring costs: in the previous quarter, increases of 40-50% were recorded, with further rises forecasted for the first quarter of this year. Some estimates suggest increases up to 70%. Adding the impact of raw material price hikes, Xiaomi Auto’s cost pressure has become extremely burdensome—tens of thousands of yuan just for critical components.

When asked whether the final retail price would be lower than the pre-order price, Lei Jun responded frankly: that’s not possible. Xiaomi’s historical policy of “offering more value without raising prices” is no longer sustainable under current circumstances. The company asked users for understanding, emphasizing transparency about the motivations behind the decision.

Discreet Aesthetics and Internal Revolution: The Philosophy of Continuity Design

Many online commenters questioned whether the SU7 restyling truly represented a “new generation,” given the limited external changes. Lei Jun replied that true progress lies in “internal strength”: the chassis, electric motor, and electronic architecture have been completely redesigned. The interiors have also undergone a radical transformation, albeit subtly from an aesthetic perspective.

Xiaomi Auto designer Li Tianyuan clarified details about the aesthetics. The main modification concerns the front grille, where the new standard mmWave 4D radar has been integrated—an element with a square footprint that required design adjustments. In the previous generation, the grille was a continuous horizontal line; the addition of the new radar necessitated a minimal but significant reworking.

Despite the opportunity for a more pronounced restyling, Xiaomi chose to preserve the original design for two strategic reasons. First, the company believes that the aesthetic of the SU7 has rare durability: internal research and external feedback show that users want to maintain this style. Second, Xiaomi considers it important to protect existing owners. Those who purchased a vehicle do not want its value to depreciate suddenly due to the appearance of a radically different version.

This choice also impacts residual value retention. The SU7 has long been the segment leader in value preservation: superficial aesthetic changes could have altered this position, harming current users’ interests. Lei Jun emphasized that opting for visual continuity in today’s competitive environment requires confidence and entrepreneurial courage. After two years, the design still garners appreciation, confirming the validity of maintaining the aesthetic largely unchanged.

Black Interior and Sophisticated Details: The Concept of “Simplicity with Vividness”

Some users criticized the new SU7’s black interiors, describing them as “antiquated” or overly sober. Lei Jun clarified that this perception is partially incorrect. After extensive studies with users, Xiaomi found that many actually prefer black as the main color choice.

To avoid a too dark or monotonous look, the design incorporated contrasting gray stitching and quilted craftsmanship that communicate both “sobriety and vibrancy,” resulting in a contemporary and refined appearance. Once experienced firsthand, the black interior conveys a strong sense of luxury and comfort. Naturally, other colors are also available, but Lei Jun advised skeptics to personally experience the aesthetic value of the black interior of the new generation.

Early Announcement and Transparent Communication Strategy

The reason for announcing the product three to four months ahead of availability is strategic. Buying a car is an important, deliberate decision, not an impulse. Xiaomi aimed to give customers enough time to physically test the vehicle, reflect consciously, and make informed choices.

The SU7 is already a best-seller in its segment, and this is its first restyling: Xiaomi proceeded with careful awareness. Informing current owners and future customers promptly about the changes ensures transparency and decision-making certainty. For this reason, the company opted for a long-term announcement, hoping for community support for this generational refresh.

Controversy Over Collaborations with Influencers: Uncompromising Principles

Lei Jun addressed recent criticisms regarding collaborations with media and influencers. According to the CEO, the internal investigation was serious, and decisions were made after in-depth discussions with management.

The issue is not about criticism of Xiaomi itself—in 16 years, the company has faced many criticisms, and some former critics now collaborate with Xiaomi. However, in this specific case, the influencer attacked, denigrated, and even cursed Xiaomi users themselves, not just the company. As an organization, Xiaomi cannot tolerate disrespectful attitudes toward its community. The core principle is to always defend customers and users. The company will not collaborate with those who slander or curse the Xiaomi community.

The PR office received severe criticism for insufficient oversight and was accordingly punished. Lei Jun also expressed hope that Xiaomi fans understand the actions taken and give the company a chance to correct course.

The Availability of Cars: A Complex Logistical Issue

When asked whether the availability of already produced cars was a marketing strategy, Lei Jun explained the underlying operational reality. The SU7 offers nine exterior colors, four interior variants, and countless customization options. The possible combinations reach tens of thousands of SKUs (stock keeping units).

Xiaomi Auto uses a made-to-order production model: vehicles are built only after customer confirmation. However, it often happens that, after production, the user changes their mind. Despite a 5,000 yuan deposit, some cancel. Some competitors offer deposit refunds if the customer switches brands; others have not finalized documents or financing and delay vehicle pickup.

In these cases, Xiaomi searches among pending orders for another customer with an identical configuration and assigns the already built vehicle to them. This explains why some users complain: “Why does the person who ordered after me get the vehicle first?” It’s not favoritism but coincidental configuration choices.

However, this logistical complexity creates difficulties. With tens of thousands of possible configurations, very unusual setups emerge. For example, someone might order all optional features—pushing the price over 300,000 yuan—but choose 19-inch wheels. If that order is canceled, finding another buyer with the same configuration becomes nearly impossible. The financial loss for Xiaomi Auto becomes significant.

Made-to-order production differs radically from immediate availability sales. A customized vehicle abandoned represents a substantial loss. For this reason, in December, Xiaomi centrally managed unsold cars—a practical decision to minimize losses.

Debunking the “Marketing Guru” Myth

Lei Jun directly addressed the label of “marketing master,” explaining its origin and how it has been used. The label originated from a 2013-14 entertainment program, where Lei Jun and Liu Qiangdong (founder of JD.com) led teams in competition. Liu’s team privately commented: “Don’t compete with Lei Jun in marketing; he can sell hundreds of thousands of phones.” This statement was later amplified beyond its original context.

Lei Jun highlighted a logical point: how could the entire company’s sales success derive solely from an individual’s marketing? The show was entertainment, and the exaggerated claims were for dramatic effect. What started as a joke became a weapon to attack competitors.

Xu Jieyun added that this dynamic can be considered “tactical labeling”: given Xiaomi’s strong sales performance, some deliberately ignore the technical quality of the products and attribute everything to marketing, polluting public judgment.

Lei Jun continued, stating that although “marketing” is a neutral term, it has been deliberately slandered. Some try to convince the public that Xiaomi’s success is solely due to marketing, obscuring the real contribution of product quality and technological innovation. The SU7 has become a sales leader and best-seller in its segment: could this have happened only through marketing? Clearly not.

Lei Jun also commented on the decline in followers on social media, previously dismissed as “nonsense.” He understood that coordinated online attacks are a powerful and persuasive weapon. However, he remains convinced that clear and transparent communication allows everyone to judge objectively. He admitted to colleagues that, fearing explanations might not convince everyone, he does not intend to persuade trolls: behind them are only automated bots.

Xiaomi has been around for 16 years; many people know both the company and Lei Jun personally. The company has always communicated sincerely. Of course, mistakes have been made, but the principle is to correct them when identified. Xiaomi remains open to dialogue with everyone: this is its distinctive trait. Lei Jun believes that true fans, users, and Xiaomi owners, through the products and the company’s 16-year history, will gradually understand and trust more.

Obsessive Precision: Sixteen Meetings for a Mug

Xu Jieyun addressed the debate about alleged obsession with quality, personally reviewing official records. For such important product development meetings, Xiaomi maintains rigorous documentation. She counted: not 15, but at least 16 officially recorded meetings.

However, there is a big misunderstanding. It might seem that Xiaomi held 16 meetings solely for a mug, but the reality is different. Usually, these meetings cover dozens of different products simultaneously; the mug was just one of many topics discussed at least 16 times within the same cycle of meetings.

Why so many sessions? Taking the final version as an example: the mug features two colors achieved through “spray masking,” including a transitional side line. The logo, after masking, is manually applied by workers.

The complexity is intentional. The goal is to ensure that the tactile sensation is refined and three-dimensional when touching the product. Lei Jun is convinced that many owners have this mug and can verify whether the feel is truly superior.

Because of this focus on details, dozens of iterations were necessary for an apparently insignificant item. These refinements aim to elevate quality and material value to the highest possible level. This is the philosophy Xiaomi applies to every element in its product chain: a dedication to detail that reflects in the company’s overall reputation.