Lei Jun explains SU7 upgrades: here's why the new model requires dozens of upgrades

During an official live stream, Lei Jun, CEO of Xiaomi Group, directly addressed all questions about the new Xiaomi SU7 generation. Alongside leaders from the automotive division and PR department, he explained how the price increases—14,000 yuan for the Standard and Pro versions, 10,000 yuan for the Max—are a direct reflection of extraordinary technical upgrades, not just a simple business correction. Transparency in communicating production choices has become the central focus: from supply chain costs to the perceived value by long-term customers.

From tens of thousands of yuan in hardware investments: the real revolution is “inside”

The new SU7 is not just small aesthetic tweaks but a radical transformation of its technical structure. According to Lei Jun, the update has touched nearly every component: both the Standard and Pro versions have been upgraded to an 800V silicon carbide high-voltage platform, previously reserved for top models. The entire lineup now comes standard with LiDAR, and driver assistance hardware is included in all variants.

Numerically, these hardware upgrades alone add tens of thousands of yuan in value—comparable, in the combustion vehicle universe, to a complete upgrade of the three main components. Alongside technological upgrades, supply chain cost pressures played a decisive role: automotive memory has seen quarterly increases of 40-50%, with further rises expected in the next quarter. These factors alone have added tens of thousands of yuan to annual production costs.

Lei Jun clarified directly: the old company policy of “more value, same price” is no longer sustainable. The increase is structural, not strategic. The CEO explicitly asked customers to understand the situation: at this stage, price reductions after pre-order periods are not possible, as is traditional in the industry.

Custom configuration: when SKUs reach tens of thousands

Xiaomi Auto’s manufacturing model follows a made-to-order principle: each vehicle is built only after the final customer order. With nine colors available, four interior trims, and countless options, the possible combinations reach tens of thousands—so many that even Lei Jun described it generally as “a lot.”

This system creates significant management complexity. When a customer changes their mind after placing an order—even with a 5,000 yuan deposit—or fails to complete paperwork or financing, an already built car remains. The company then tries to assign it to another customer with the same configuration. Sometimes, very particular choices emerge: someone orders a fully equipped car (over 300,000 yuan) but requests 19-inch wheels. When the customer cancels, finding another buyer with the same set of options becomes nearly impossible.

This situation has forced Xiaomi to implement centralized management of these unsold cars in recent months to minimize losses on highly customized configurations that are difficult to place on the market.

Design that endures: a bold choice between preservation and innovation

Although visually similar to the previous model, the new SU7 has undergone precise modifications in the front details. The need to integrate the new square-shaped mmWave 4D radar required an adjustment of the front grille: the previous solution, with a continuous horizontal grille, could not accommodate the new sensor without significant compromises.

Despite the possibility of a more pronounced aesthetic restyling, Xiaomi deliberately chose to keep the fundamental lines unchanged. Xiaomi Auto designer Li Tianyuan explained the rationale: first, internal research and customer feedback confirm that the SU7’s design maintains lasting appeal and does not require radical changes; second—and equally important—preserving current owners’ satisfaction, avoiding a drastic visual restyling that might make them feel obsolete after a few months of ownership.

This choice also affects residual value, an area where the SU7 remains a market leader. Lei Jun emphasized the courage needed to “not change” in an era where aesthetic innovation is often seen as necessary: it’s a decision that reflects confidence in the design itself and respect for the established customer base.

Black interiors: sobriety and luxury in one solution

Some users criticized the new generation’s black interiors as “outdated” or too dark. Lei Jun countered this perception by recalling extensive research among users, which shows black as the predominant preference. To avoid a monotonous visual effect, black interiors feature contrasting gray stitching and quilted detailing that convey “sobriety but also vibrancy.”

Additionally, other color options remain available, but the CEO advised skeptics to physically experience the new black interiors to perceive the sense of luxury and comfort they communicate—qualities hard to convey through photos or descriptions.

Marketing vs reality: why sales figures surpass every strategy

Lei Jun directly addressed the recurring label of “marketing master.” The phrase originated from a 2013-2014 entertainment program, when he and Liu Qiangdong (founder of JD.com) led competing teams; Liu’s team privately said they couldn’t compete with Lei Jun in marketing. The phrase was later amplified and exploited by competitors.

The CEO clarified: it’s a label that conceals a subtle critique. At the same time, he reaffirmed that the success of the SU7—becoming a bestseller and sales leader—cannot be solely attributed to marketing strategies. No communication effort could generate those sales numbers without a fundamentally competitive product.

Lei Jun also acknowledged that online attacks coordinated by trolls and bots are indeed powerful tools for distorting public perception. However, he remains convinced that transparency and 16 years of company history are enough to build trust among genuine users and Xiaomi owners. The response to attacks is not about convincing trolls but about clear communication with the company’s ecosystem of customers.

Obsessive details: how a cup requires at least 16 meetings

An anecdote from the live stream involved the controversial number of meetings dedicated to a simple product: a brand’s cup. PR director Xu Jieyun clarified that there were not 15 meetings about a single cup, but at least 16 meetings where the cup was one of many topics discussed.

The complexity lies in the manufacturing details: the final version uses a “spray masking” technique for two different colors, including a side transition line, with the logo applied manually after painting. These measures create a refined, three-dimensional tactile sensation when touched.

Xu Jieyun invited owners of this cup to feel it personally to verify how the tactile quality differs significantly from similar products made with less meticulous processes. The obsession with detail, requiring at least 16 meetings to perfect every aspect, symbolizes Xiaomi’s manufacturing philosophy: no compromises on quality, even for seemingly minor objects.

Transparency as a principle: commitment to customers and community

Toward the end of the live stream, Lei Jun reiterated a fundamental principle: Xiaomi has been building relationships based on truth and openness for 16 years. The company welcomes criticism—many long-time critics now collaborate with the brand—but will never tolerate disparaging attacks against its user community. This is the company’s red line.

The announcement of the restyling, three months in advance, reflects this philosophy: buying a car is an important decision, not an impulsive purchase, and deserves time for reflection and informed choice. In the specific case of the SU7—already a bestseller and the first official restyling—greater transparency aims to protect the certainty of current owners and future customers alike.