After car design leak, Xiaomi seeks economic compensation from supplier

After a supplier leaked early design drafts of an upcoming car model, China's Xiaomi has imposed a 1 million yuan ($149,000) penalty on it.  

A spokesperson wrote on its official Weibo page that Xiaomi had "dealt seriously" with a Beijing-based molding technology company which on Jan. 22 publicly revealed images of an upcoming car's front and rear bumpers, violating a confidentiality agreement.

The name of the company was not disclosed by Xiaomi however.

As punishment, the smartphone-turned-car maker said it would impose "economic compensation" of 1 million yuan ($148,763) on the supplier. The spokesperson added Xiaomi had instructed the supplier to strengthen its information security management, and develop plans to upgrade its confidentiality measures.

The note was also circulated by Xiaomi CEO Lei Jun on his personal Weibo page.

Over the Chinese New Year, images purportedly showing mock ups of the front and rear of Xiaomi's upcoming electric vehicle (EV) spread on social media. It also showed a full view of what appeared to be a white compact sedan, with a license plate that read "MS11".

Though the leaks apparently marked the first confirmed images of Xiaomi's long-awaited automobile, Wang Hua, general manager of Xiaomi's public relations department, however said the leaked designs were part of a bidding process and were not final renderings.

 In March 2021 Xiaomi announced it would enter the automotive sector, aiming to invest $10 billion in the project over ten years. Since then, the company has committed to opening a plant in Beijing that could produce 300,000 vehicles per year.