Court Calls SU7 Ultra Ducted-Hood Marketing 'Exaggerated' But Not Fraud

The People's Court of Licheng District in Jinan issued a first-instance ruling on May 13 finding that Xiaomi's promotional materials for the SU7 Ultra's optional carbon-fibre dual-duct front hood contained 'exaggerated content that violated the principle of good faith,' yet stopped short of calling it fraud. The judge terminated a March 7, 2025 purchase contract effective July 4, 2025, ordered Xiaomi to refund the buyer's 20,000 yuan ($2,940) deposit within ten days, and rejected the plaintiff's demands for treble damages and double-deposit repayment.

The ducted-hood dispute has dogged the SU7 Ultra since owners and online testers questioned whether the carbon openings provided real downforce or cooling. In court Xiaomi argued that Lei Jun had stated at the October 2024 launch that the production car 'differed significantly from the prototype' and submitted a China Automotive Technology and Research Centre wind-tunnel report showing only limited downforce, airflow extraction and brake-cooling gains. The company also pointed to its existing remedies — a free standard-hood swap for undelivered cars, compensation points for current owners, and the free aerodynamic upgrade program first reported in March 2026. April SU7 domestic sales hit 26,826 units, 73.1% of brand volume per China EV DataTracker.

This is the first substantive court ruling on the saga, and the split decision is the worst possible PR outcome: a judge has formally written 'exaggerated' onto Xiaomi's marketing record while denying the plaintiff the punitive damages that would have capped the story. Expect copycat suits at small-claims scale and a permanent footnote against Lei Jun's launch-keynote style. For prospective Ultra buyers the practical question is now whether the standard hood swap and aero upgrade fully neutralise the residual reputational drag — or whether resale values absorb it instead.