SHANGHAI – Xiaomi Corporation has moved quickly to quash mounting speculation about delays to its YU7 electric SUV program, even as the unexpected absence of charismatic CEO Lei Jun from this year's Shanghai Auto Show raised eyebrows across the industry.

Official Denial Amid Growing Speculation

The Chinese tech giant issued a firm rebuttal to reports suggesting its ambitious electric SUV project faced significant production setbacks. "The development of our YU7 model remains firmly on schedule, with mass production timelines unchanged," a Xiaomi Automotive spokesperson stated emphatically.

The denial comes after several industry insiders and supply chain sources suggested that certification challenges with the vehicle's high-voltage battery system could push the launch from early 2025 to late 2025. Notably, battery supplier CATL has reportedly been working through final validation tests on the innovative 800V architecture designed for the YU7.

Leadership Void at Critical Juncture

The absence of CEO Lei Jun, arguably China's most visible tech executive and the driving force behind Xiaomi's automotive ambitions, cast a long shadow over what many expected to be a showcase event for the company's EV progress.

"Lei Jun's non-appearance is particularly surprising given how personally he's championed this project," noted Rebecca Lin, senior analyst at Canalys. "From live-streamed test drives to hands-on factory tours, he's been the human face of Xiaomi's automotive pivot."

Company representatives cited "scheduling conflicts" for Lei's last-minute cancellation, though sources suggest internal strategic reviews may have demanded his attention. The CEO later appeared via a pre-recorded video message emphasizing Xiaomi's "unwavering commitment" to its EV goals.

Market Jitters and Competitive Landscape

News of the potential delays sent Xiaomi's Hong Kong-listed shares down as much as 4.2% in Wednesday trading before recovering slightly after the company's denial. The reaction underscores how heavily investors are banking on Xiaomi's automotive division to drive future growth as smartphone sales plateau.

The YU7 SUV represents Xiaomi's crucial second act following the surprisingly successful debut of its SU7 sedan, which garnered over 100,000 orders in its first 40 days. However, the company now faces intensified competition in China's brutally competitive EV market, with rivals including:

Huawei's Aito brand rolling out refreshed SUV models

NIO's revamped ES6 gaining traction

Li Auto's L-series SUVs continuing to dominate premium segments

Production Ramp-Up Challenges

Industry observers note that even if Xiaomi maintains its early 2025 target, the company faces daunting production challenges. Its Beijing factory, currently manufacturing the SU7 sedan at full capacity, would need significant retooling to accommodate the different platform requirements of the YU7.

"Transitioning from sedan to SUV production is more than just a body style change," explained manufacturing expert Dr. Wei Zhang of Tsinghua University. "The supply chain logistics, battery packaging, and even paint shop configurations require substantial adjustments."

What Comes Next?

All eyes now turn to several key milestones:

Completion of YU7 prototype testing (expected by Q3 2024)

Regulatory certification submissions (targeted for Q4 2024)

Pre-production validation builds (early 2025)

Xiaomi has promised to reveal more details about the YU7 at its annual product launch event this August, where industry watchers will be looking for concrete signs of progress – and perhaps a reappearance by its celebrity CEO.