*

New EV orders slump 55% in April vs March, analyst data

shows

*

Consumers seek refunds over car hood controversy

*

Other complain about a big discrepancy in delivery times

SHANGHAI, May 14 (Reuters) - China's Xiaomi ( XIACF ) is

seeing a slump in new orders for its SU7 electric sedan,

analysts said on Wednesday, as the company and its charismatic

CEO grapple with a growing consumer backlash that now threatens

its runaway sales success.

The sporty electric vehicle quickly became a hit among

Chinese drivers after it was launched in March last year. By

December, its sales had overtaken Tesla's Model 3 in

the world's biggest auto market on monthly basis.

But Xiaomi ( XIACF ) is now facing a wave of consumer angst that began

last month following a fatal accident involving an SU7.

The accident, which is still under investigation, prompted

widespread public discussion over the safety of the kinds of

smart driving features offered by Xiaomi ( XIACF ). Chinese regulators

have since further tightened regulatory oversight on the

marketing and promotion of such features.

Xiaomi ( XIACF ) did not respond to a Reuters request for comment for

this story.

New orders for the SU7 fell 55% in April from March and the

trend continued in May, with a 13,500 orders placed in the first

two weeks of the month, Deutsche Bank analysts said in a note on

Wednesday.

That compared to 23,000 orders in the second week of March

alone, a weekly all-time high.

Xiaomi ( XIACF ) was pulled into further controversy last week after

it apologised for what it called "unclear communication"

following complaints from customers.

SU7 owners said the company had falsely advertised the

design of a dual-vent carbon fiber hood it offers at an

additional charge of 42,000 yuan ($5,826) on its SU7 Ultra.

Nearly 400 owners of the SU7 Ultra had asked for refunds

after finding the hood had no air ducts inside, which

contradicted previous claims by Xiaomi ( XIACF ) and its CEO Lei Jun,

Shanghai government-owned media the Paper reported on Tuesday.

"This crisis not only exposes the credibility crisis of

Xiaomi SU7, but also the distortion of some values ​​in the

current new energy vehicle industry," it wrote.

Lei, who is a social media star in China with 26 million

followers on Weibo, said on Saturday the past month had been the

most difficult period for him since he founded the electronics

maker a decade ago.

Other customers and analysts told Reuters that Xiaomi's ( XIACF )

delivery time estimates for SU7s were creating confusion.

Purchasers have often found the estimates greatly

overestimate delivery times, and they receive their cars much

sooner than expected.

That's led some analysts to question whether Xiaomi ( XIACF ) is

seeking to create an artificial sense of scarcity as a marketing

tactic.

One Chinese blogger calling himself A Zu told Reuters he had

created an app allowing buyers to submit their purchase and

pick-up information in a bid to better understand Xiaomi's ( XIACF )

delivery patterns.

When checked by Reuters on Wednesday, Xiaomi's ( XIACF ) official app

gave estimated delivery times ranging from 26 weeks to 11

months.

A SU7 owner himself, A Zu, who declined to share his real

name, said he hoped Xiaomi ( XIACF ) could be more transparent with its

delivery arrangements.

Xiaomi ( XIACF ) has long employed highly successful marketing tactics

to sell electronic products such as smartphones, analysts at

Chinese consulting firm LandRoads said.

"But unlike digital consumer products, the automobile

involves longer purchase decision-making processes and bigger

investment by consumers, who will have higher requirements on

the brand's capability in fulfilling promises and its long-term

credibility," it said.

($1 = 7.2083 Chinese yuan renminbi)