Safety is the New Brand Equity: Lessons From Xiaomi’s EV Meltdown
Xiaomi’s worst week in years shows how fast market value can plunge. Here are some lessons for brand leaders in times of crisis.

Xiaomi’s tough week is a warning to every EV leader in Asia. Safety fears can erase market value faster than any price war.
Shares fell 11.7% in the brand's worst week in more than three and a half years. Two reported crashes tied to the SU7 model fueled the drop. One crash in Chengdu turned fatal. People asked whether bystanders could open the doors, and shares tumbled intraday as social feeds filled with speculation.
But this is bigger than one brand. The world’s toughest EV battery standards arrive in China on July 1, 2026. Companies that treat safety as a core strategy, not a compliance checkbox, will protect trust, customers, and valuation.
What just happened, and why it matters
Xiaomi did not publicly confirm its vehicles were involved in the October accidents reported online. Its CEO also did not address the incidents in a public speech that week. The silence collided with Asia’s real-time media environment, where crisis timelines have compressed to minutes. An information vacuum formed, and the market priced the brand in the worst way possible.
The company had just recalled more than 116,000 SU7 sedans in September through a software update to fix assisted driving behavior under extreme conditions. That move showed the benefits of over-the-air updates. It also raised new questions about validation and testing depth.
By 2026, the safety bar resets
China’s GB38031-2025 battery standard takes effect next July, widely seen as the world’s strictest. The requirement is stark. Batteries must stay free of fire and explosion for two hours after thermal runaway starts, a two-hour safety window compared with the previous five-minute warning rule. Packs must also endure 300 fast-charging cycles before short-circuit testing without fire or explosion. Europe’s related rules are not fully applicable until 2029, and current US rules are less demanding.
This matters beyond China. The country controlled 61% of Asia-Pacific EV market value in 2024, and the region's EV market is on track to more than double by 2030. If you want growth in the region, you will build to China’s bar or higher.
Design choices now under the microscope
Electronic door handles are a growing risk area. There have been 140 reports of occupants trapped in EVs with electronic releases, some leading to severe injuries. Regulators in China are weighing new rules for door handles. That creates both compliance risk and a chance to lead. Redesign mechanical emergency releases that work without power and are easy for rescuers to find.
Xiaomi’s Chengdu crash brought this risk into the spotlight. Another reported SU7 blaze also sparked safety debate and a sell-off.
Trust is low, and silence makes it worse
Automotive ranks last among major consumer sectors with a Trust and Like Score of 63. That means consumers assume the worst when gaps appear between what you say and what you do. In Asia, trust grows when brands act fast and locally. Stakeholders expect responses that are grounded in the market, not translated from a global script. Responsiveness and local grounding are key.
Consumer anxiety is real. In Singapore, Deloitte finds 47% worry about charging time, 44% cite a lack of infrastructure, and 40% express battery safety concerns. Hybrids are preferred by 31%, a hedge against charging gaps and safety fears. Across the region, Southeast Asia EV adoption remains relatively low at about 10% of new car sales. Safety incidents, or vague responses to them, hit confidence where it is already fragile.
Crisis readiness for Asian EV brand leaders
- Build a cross-functional crisis core team with pre-agreed roles for product, legal, comms, and regional leads. Practice activation drills quarterly.
- Set a 60-minute rule for first response. Acknowledge what you know, what you do not, and what you are doing next.
- Speak with empathy, not defensiveness. Avoid technical jargon in early statements.
- Empower local market teams to tailor messages, then align updates on one source of truth.
- Use social media for rapid facts and instructions. Move deeper details to your site as updates arrive.
- Plan your recall and over-the-air paths in advance. Explain how you validate software fixes and how owners can get help if an update fails.
Proactive compliance priorities ahead of July 2026
- Exceed GB38031 now. Publish your two-hour thermal runaway test data and the scenarios you used.
- Prove 300 fast-charging cycle durability with third-party validation. Explain the trade-offs between charging speed and battery life.
- Redesign door systems for failure modes. Add visible, mechanical emergency releases that rescuers can find quickly.
- Stress test over-the-air updates in low-connectivity and low-power states. Document rollback plans.
- Align investor messaging to safety milestones. Tie capital spend to compliance progress and upcoming audits.
Why this is existential, not optional
China’s EV field is overcrowded, and consolidation is coming. Analysts expect those left standing on the field to shrink from 129 brands in 2024 to roughly 15 by 2030. Market consolidation pressure means a single safety incident can end a brand that lacks reserves or trust.
Software can help or hurt. Over-the-air updates cut recall costs and speed fixes, but failed implementations can disable vehicles or create new safety issues. This has been documented across several global automakers. Treat software quality as safety-critical, and communicate tests and safeguards up front.
Boards and comms leaders are already spending for this. The global public relations market reached US$101.2 billion in 2024 and is growing, with crisis work commanding premium fees because it protects market cap. Integrate safety, compliance, and communications into your risk plan, not as a last-minute add-on to marketing. Build the muscle now, then test it. Your next headline may not wait.
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