Xiaomi SU7 Ultra equipped with controversial optional carbon-fiber dual-duct front hood. Credit: Xiaomi Understand China EV’s Market Real-time notifications when critical EV data is released All important data in one place 2,000,000+ data points Become a member A court in China has ruled that Xiaomi’s marketing for the Xiaomi SU7 Ultra carbon-fibre dual-duct front hood contained “exaggerated” elements, but did not constitute fraud, in one of the first major legal decisions tied to the company’s controversial “ducted hood” dispute, according to Sina. The People’s Court of Licheng District in Jinan, Shandong province, issued a first-instance ruling on May 13 in a lawsuit filed by an SU7 Ultra buyer against Xiaomi Auto and its local sales company. The court ruled that Xiaomi’s promotional materials included exaggerated content that violated the principle of good faith. However, it stated that the automaker did not fabricate facts or intentionally conceal the truth, and rejected the plaintiff’s request for treble damages and double deposit repayment. Under the judgment, the vehicle purchase agreement signed on March 7, 2025, will be terminated on July 4, 2025. Xiaomi was ordered to refund the plaintiff’s 20,000 yuan (2,940 USD) deposit within ten days after the ruling takes effect, while Xiaomi bears joint liability for the payment. The court rejected additional claims related to compensation for the optional carbon-fibre hood package. Court focuses on exaggerated marketing The dispute centred around Xiaomi’s optional dual-air-duct hood for the SU7 Ultra. Some owners and online users previously questioned whether the hood’s openings provided meaningful aerodynamic or cooling functions after conducting informal tests. During the trial, Xiaomi argued that company founder Lei Jun had already stated at the October 2024 launch event that the production car differed significantly from the prototype. Xiaomi said references to “replica” design referred to exterior styling rather than a fully identical internal structure or performance. The company also stated that the vehicle uses an AGS active intake grille system that automatically closes when stationary, making some online airflow tests unrepresentative. Xiaomi submitted a China Automotive Technology and Research Centre wind tunnel report that reportedly showed the hood provided limited downforce gains, limited airflow extraction, and auxiliary brake cooling. Xiaomi further told the court that it had already revised promotional wording and apologised after consumer complaints emerged. The company also offered free replacement standard hoods for undelivered vehicles and compensation points for existing owners. Previous court ruling and upgrade program The latest ruling follows an earlier case in which Xiaomi obtained a procedural victory in another dispute related to the hood controversy. In March, we also reported that Xiaomi introduced a free aerodynamic upgrade program for SU7 Ultra owners equipped with the ducted hood. Xiaomi SU7 sales in China till April 2026. Credit: China EV DataTracker Xiaomi SU7 sales context China EV DataTracker data shows Xiaomi SU7 domestic sales reached 26,826 units in April 2026, up 240.3% month-on-month but down 6.2% year-on-year. The model accounted for 73.1% of Xiaomi brand sales during the month. Earlier 2026 monthly volumes included 7,882 units in March and 1,133 units in January.