Chinese tech giant Xiaomi is facing a wave of consumer backlash after announcing that buyers of its newly launched YU7 electric SUV may have to wait more than a year to receive their vehicles.

The company, which entered the electric vehicle market last year, revealed that it received approximately 240,000 orders within the first 18 hours of the YU7 going on sale last Thursday. However, supply is currently limited, and delivery estimates shown on Xiaomi’s app now range from 38 to 60 weeks, according to Reuters checks.

More than 400 customers have since lodged complaints on Sina’s Black Cat consumer platform, accusing Xiaomi of failing to disclose the lengthy wait time upfront. Buyers were required to pay a non-refundable deposit of 5,000 yuan ($698), and many claim the expected delivery timeline only became visible after confirming the order.

Some customers also raised concerns that the extended wait could affect their eligibility for electric vehicle tax exemptions, which are set to expire at the end of 2025.

Xiaomi has yet to issue an official response, though CEO Lei Jun, who has 26.8 million followers on Weibo, promised to address customer questions during a livestream event on Wednesday.

The YU7 is Xiaomi’s second electric vehicle, following the successful launch of its SU7 sedan, which has outsold Tesla’s Model 3 in China since December. Priced from 253,500 yuan ($35,360), the YU7 undercuts Tesla’s Model Y by nearly 4%.

Despite consumer frustration, Xiaomi is pushing ahead with expansion plans. Monthly production at its Beijing plant rose to 28,000 units in May, up from 4,000 in March 2024, with additional factories planned nearby as it seeks to challenge Tesla’s dominance in China’s EV market.