Business Desk 
Apr 02, 2025
Xiaomi Auto’s electric car, the Xiaomi SU7, is seeing strong demand despite the high cost of new energy vehicle (NEV) insurance. The company delivered over 29,000 units in March and aims to sell 350,000 cars by 2025.
However, EV insurance premiums are 21% higher than those for traditional gas cars, making it more expensive for buyers.
Xiaomi's NEV insurance
To help customers, Xiaomi Auto provides insurance through its app in partnership with leading companies. It also offers a “Worry-Free Service Package” with extra benefits. However, this package is only available through Xiaomi’s official channels, limiting choices for buyers.
Industry experts say that NEV insurance is costly due to multiple reasons. One key factor is expensive repairs, especially for battery-related issues. Insurers also report that NEV owners file more claims compared to gasoline car owners.
Another challenge is risk assessment, as traditional pricing models do not fully account for electric vehicle risks. As a result, insurance companies hesitate to lower prices, causing financial losses in the sector.
To tackle these challenges, Chinese authorities are introducing new guidelines. A platform called “Car Insurance Easy to Insure” is being launched to help NEV owners get fair coverage and prevent unfair denials.
