- Huawei's Richard Yu hinted that Xiaomi's EVs are not as good as the cars from brands backed by Huawei, but they're getting high sales.
- Xiaomi executives responded, suggesting this was Huawei's jealousy.
The clash between Xiaomi (HKG: 1810, OTCMKTS: XIACY) and Huawei has extended from smartphones to the electric vehicle (EV) industry, as both Chinese tech giants seek to gain more supporters in a rapidly growing but highly competitive industry.
Huawei's executive director and chairman of the consumer business group, Richard Yu, hinted during a speech on the first day of the 2025 Shenzhen auto show that Xiaomi's EVs are of lower quality than those of brands backed by Huawei and do not deserve such high sales figures.
Xiaomi executives subsequently responded, turning the dispute into a trending topic on social media from yesterday to today.
"As you can see, a company from another industry, making just one car, has achieved massive sales," Yu said in his speech yesterday, according to widely circulated video clips on Chinese social media platforms.
"Although its products may not be that good, they've already sold like hotcakes," Yu said.
Yu did not directly mention Xiaomi by name, but it was clear he was referring to the company, implying that Xiaomi's EVs are weak in terms of quality and autonomous driving capabilities but have achieved success through marketing.
"It has strong marketing capabilities, strong brand capabilities. So one product from it can become a hot seller," Yu said.
"Our products are better than theirs in every aspect -- better quality, better experience, better performance, but we can't sell as much as they do, not even a fraction of their sales," Yu complained.
"That's just how it is in today's world," he said.
Xiaomi partner and president Lu Weibing responded on Weibo last night, suggesting that Yu was defaming the company.
"Whether it's the popularity of the SU7 or the higher attention and expectations for the YU7 compared to the SU7, it's all based on strong product competitiveness," Lu wrote on Weibo.
"The success of Xiaomi EV is the success of Xiaomi's values, Xiaomi's business model, and Xiaomi's methodology!" Lu said.
Lu also quoted Mo Yan, a renowned Chinese literary figure and the 2012 Nobel Prize in Literature laureate, saying, "Slandering is, in itself, a form of admiration."
Xiaomi founder, chairman, and CEO Lei Jun cited the same quote when sharing Xiaomi EV's May delivery figures today, though he later edited and removed the quote.
Huawei and Xiaomi are among the most closely watched companies in China's automotive industry, despite their differing approaches to the sector.
Huawei does not directly manufacture vehicles but has partnered with multiple domestic automotive giants under its HIMA (Harmony Intelligent Mobility Alliance) business to create new automotive brands.
Under the HIMA business, there are currently five brands: Aito from Seres Group, Luxeed from Chery, Stelato from BAIC Group, Maextro from Anhui Jianghuai Automobile Group (JAC), and Shangjie from SAIC Motor (SHA: 600104).
The new models from these five brands are typically launched directly by Huawei, primarily by Yu. Huawei does not own these brands but plays a key role in product definition, design, and sales.
Xiaomi officially announced its entry into the automotive industry in March 2021 and officially launched its first model, the SU7 electric sedan, in March 2024.
The SU7 achieved rapid success and is one of the rare models in China's EV sector that remains popular a year after its launch.
Xiaomi EV delivered over 28,000 units in May, marking the eighth consecutive month with monthly deliveries exceeding 20,000 units, according to data released earlier today.
Xiaomi EV currently offers only the SU7 series, including the standard SU7 model and an electric sports car based on the SU7 with a maximum power output of 1,548 Ps.
Xiaomi unveiled the YU7 electric SUV on May 22, with an official launch scheduled for July.
Huawei started as a manufacturer and seller of telecommunications equipment and entered the smartphone market during the early days of the Android system.
Xiaomi began by developing a custom Android skin and quickly became one of the world's largest smartphone manufacturers.
During the smartphone era, the two companies frequently clashed, with the most notable incident occurring in 2019.
On January 10, 2019, Xiaomi announced the independence of its new brand Redmi, targeting the lower-price market, and repeatedly compared it to Honor, which was then a Huawei sub-brand, during the launch event.
"Take life and death in stride; if you're not convinced, let's fight,” Lei wrote in Chinese on a slide, which was seen as a direct challenge to Huawei.
Huawei and Honor executives later responded, making the topic a focal point of discussion for a long time.
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