Shares of Xiaomi Corp. fell 4.1% to HK$27.84 on Monday after the company joined a major recall of electric vehicles in China over safety concerns involving flush-mounted door handles.
The recall includes models from Xiaomi and several other automakers, including Tesla, Leapmotor, Xpeng and Geely. Authorities cited a design flaw in the door handles, which rely on electronic buttons or touch sensors rather than traditional mechanical systems. The issue can complicate emergency egress if a vehicle loses power, according to the notice.
The recall affects approximately 1.8 million vehicles across the industry, according to filings with Chinese regulators. Xiaomi’s stock decline coincided with a broader retreat in Hong Kong-listed technology shares, with the Hang Seng index down as much as 2% on the day.
The recall highlights growing scrutiny of EV safety features as Chinese automakers expand production and push into international markets. Xiaomi, which began volume deliveries of its SU7 sedan in March, has faced heightened competition in the domestic EV sector alongside established players like Tesla and BYD.
The company has not yet commented publicly on the recall or its financial impact. The episode underscores risks facing EV manufacturers as regulatory oversight tightens and consumer expectations rise for vehicle reliability and safety standards.
