(Yicai) May 12 -- Chinese tech giant Xiaomi is embroiled in another controversy concerning its premium electric vehicle, the SU7 Ultra, this time for alleged false advertising of its dual-vent carbon fiber hood. The uproar comes less than two months after a fatal crash involving the same model. Despite Xiaomi’s offer of compensation, over 300 dissatisfied customers are demanding full, penalty-free refunds.

“I placed my order for the Xiaomi SU7 Ultra on Feb. 27, and paid an extra CNY42,000 (USD5,815) for the optional carbon fiber dual-vent hood,” said an owner named Liu Heng. “Xiaomi’s promotional materials emphasized the sleek design and enhanced performance. Sales staff also told me that the hood could not be retrofitted after purchase and must be selected as a factory-installed option when placing the order.”

However, after owners started to receive the vehicles last month, on inspection they found that the hood had no air ducts inside and was not connected to the cooling systems.

This contradicted Xiaomi’s claims. The Beijing-based company said on Feb. 26 that the carbon fiber hood features two integrated air vents to help guide airflow. The company even showed pictures of working prototypes at the SU7 Ultra's launch event.

Even CEO Lei Jun said on social media on March 2 that, “The carbon fiber hood isn’t just cosmetic. The internal structure has been changed too. The dual ducts direct air to the wheels for cooling.” Although he edited the post six hours later, he still made reference to internal structural changes.

This feature turned out to be a big selling point, and many buyers paid extra and waited nearly two months for delivery based on this promise.

Xiaomi has since issued a public apology, saying that the firm’s previous communications were unclear, but it maintains that the hood does help with airflow and provides auxiliary cooling.

On May 7, it also came up with a proposed solution. “Undelivered orders can switch back to aluminum hoods for a limited time period. For those who have already received their cars or locked in their orders with the carbon fiber hood option, they will receive 20,000 loyalty points as a goodwill gesture.”

“We’re not happy with what they’re offering,” said Liu. He and dozens of other buyers have released a joint video demanding a full refund, which has since gone viral on social media.

The Xiaomi SU7 Ultra was launched on Feb. 27 with a price tag of CNY529,900 (USD73,245). Xiaomi has promoted it as the world’s “fastest” four-door mass-produced car. Xiaomi has already received over 10,000 orders for the SU7 Ultra orders, enabling the company to hit its yearly goal ahead of schedule.

Editor: Kim Taylor