Since the October car accident in Chengdu, a storm surrounding Xiaomi's automotive division has forced founder Lei Jun to re-examine and restructure the company's organizational framework.

At the end of October, Xiaomi announced a major reshuffle, establishing a new first-tier department—the Architecture Division—led personally by Lei Jun. Insiders confirmed the move, which elevates the division to a strategic core, granting it absolute authority and resource allocation power. Unlike typical secondary departments handling forward-looking technologies, this unit will focus on defining next-generation smart EV architectures 3–5 years ahead of product cycles.

The new division, comprising key R&D leaders and core personnel, will shape Xiaomi's future EV technology roadmap. Notably, Cui Qiang, former head of vehicle development, has been reassigned to the Architecture Division, with his previous role taken over by Wang Zhensuo, former head of electric powertrain.

This restructuring reflects Xiaomi's transition from its initial blockbuster success to facing market skepticism. After two high-profile accidents—first in Anhui in March, then in Chengdu—public scrutiny intensified. Despite the hype around Lei Jun's personal brand and strong sales (266,722 deliveries in the first nine months of 2024, targeting 350,000 for 2025), safety concerns have emerged as a critical vulnerability.

Both accidents—involving door malfunctions and battery fires—struck at consumers' deepest safety anxieties. The Chengdu incident, where rescuers couldn’t open the doors of a Xiaomi SU7 Ultra, further dented confidence. Four days later, Lei’s speech focusing on criticizing "online trolls" rather than addressing safety drew criticism for deflecting accountability.

The fallout is tangible: resale values for models like the YU7 plummeted from over ¥10,000 to around ¥2,000, with longer resale cycles post-accidents. Li Yanwei of the China Automobile Dealers Association noted these incidents as a tipping point for Xiaomi’s used-car market woes.

To rebuild trust, experts urge Xiaomi to implement transparent safety measures. Lei’s direct leadership of the Architecture Division signals its top priority—developing a foundational "operating system" for EVs, akin to Tesla’s architectural edge that outpaced legacy automakers.

Yet, establishing this division is just the first step. In an industry where safety is non-negotiable, Xiaomi must prove its commitment beyond marketing. Global rivals like Tesla (software integration) and BYD (hardware mastery) set high bars. Without a robust technical backbone, Xiaomi risks fading like past automotive challengers who prioritized hype over engineering rigor.

This crisis also questions Xiaomi’s "value-for-money" ethos. While specs may drive electronics, safety is the ultimate "feature" in autos—one that brooks no compromise.

Unless safety becomes ingrained in its DNA, Lei Jun’s ambition to rank among the "global top five" may remain a mirage.