Three college students died on Saturday night after their Xiaomi SU7 hit a concrete barrier on a section of the Dezhou-Shangrao Expressway in eastern Anhui province.
Before the crash, the vehicle was in Xiaomi's Navigate On Autopilot (NAO) assisted driving mode, traveling at 116 kilometres per hour (72 miles per hour), according to a company statement posted online.
While travelling on a highway section with roadworks, the vehicle detected an obstacle ahead, issued a warning, and handed control to the driver, Xiaomi said.
But seconds later, the vehicle hit a barrier at around 97km/h.
Footage posted online showed a car in flames on the highway and later the burned-out wreckage.
Xiaomi founder Lei Jun said in a social media post late Tuesday that he was "heavy-hearted" and that his company would "continue to cooperate with the police investigation".
Since the crash, many online have questioned Xiaomi's assisted driving functions, why the car caught fire, and whether the doors could be opened in an emergency.
On the X-like Weibo, an account identified by the platform and local media as the driver's mother accused Xiaomi of failing to contact her and "not taking the lives of three kids seriously".
"As family members, we have many questions. Why did the vehicle catch fire after hitting the barrier?... We just want an explanation," the woman wrote.
Xiaomi, a consumer electronics giant selling goods from smartphones to vacuum cleaners, launched the SU7 in March 2024 as it entered the auto sector.
It sold more than 200,000 units in its first year, with the standard model priced at around 210,000 yuan ($28,900).
The company's share price has fallen around five percent since the accident.
China's EV companies are world leaders in assisted driving technology. Xiaomi says cars using its intelligent driving system can overtake and change lanes on the highway, though it cautions that it is not a replacement for drivers.
Xiaomi said it had sent a team to investigate the crash and tried to contact the victims' families through local authorities.
sam/mtp
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