China s Xiaomi says it is cooperating with police after fatal EV accident

HONG KONG - Xiaomi confirmed on April 1 that one of its SU7 electric vehicles (EVs) was involved in an accident on an expressway in China.

Local media reported that three people died in the incident that is likely to spark scrutiny over the smart driving software deployed in many of today’s cars.

The technology giant’s stock fell as much as 6.3 per cent in Hong Kong before closing 5.5 per cent lower.

The shares have slumped almost 18 per cent since Xiaomi raised about US$5.5 billion (S$7.4 billion) in an equity sale last week to help fund an expansion of its EV business.

“Investors might have concerns over Xiaomi’s competitiveness and growth outlook after reports of the car accident,” said Mr Shen Meng, director at Beijing-based investment bank Chanson Co.

The completion of the share sale has “also weighed on sentiment”.

Police arrived at the scene immediately and are now investigating the accident, which occurred on an expressway in Anhui province on March 29, Xiaomi said in a post on its Weibo account.

Xiaomi’s statement did not include any details on fatalities or injuries, and representatives from the company did not immediately respond to additional questions.

According to Xiaomi’s initial report, the car’s advanced driver assistance function had been engaged less than 20 minutes before the crash.

Alerts were issued because the driver apparently was not holding on to the steering wheel.

Seconds after another warning was sent about obstacles in the road and the driver then retook control of the wheel, the car crashed into concrete fencing on the side of the road.

The EV was engulfed in flames after the impact, with only some parts of the car, like the steel chassis, remaining in the fiery aftermath, local media reports said.

According to the company’s marketing materials,