Small EV maker withdraws patent challenge and apologizes after “Laotoule sues Xiaomi Auto” flare-up

What happened

Shandong Yanlu New Energy Vehicle Co., Ltd (山东燕鲁新能源车业有限公司), trading as Yanlu New Energy (燕鲁新能源), says it has withdrawn a patent invalidation request targeting Xiaomi Auto (小米汽车) and has apologized for causing the dispute. In a statement posted to its official Weibo, the company said it had stopped using the contested parts, formally rescinded the invalidation petition on March 25, 2026, and that related updates will be published by China’s National Intellectual Property Administration (CNIPA) soon.

The claims and counterclaims

It has been reported that the episode began after Laotoule (老头乐) — widely referred to in Chinese media as the plaintiff in early coverage — sued Xiaomi Auto over design similarities. Shenzhen Business Daily reported earlier that Yanlu had challenged three exterior design patents owned by Xiaomi (涉及后保险杠、前保险杠及前大灯), parts that were described as key visual features of Xiaomi’s SU7 and YU7 models. Yanlu’s statement said the company withdrew the challenge out of respect for intellectual property and apologized for any disruption to Xiaomi and Xiaomi Auto.

Company background and next steps

Yanlu is a small, privately held Shandong company with about 20 employees and a registered capital of RMB 10 million; its core product is the “Yunlei” (韵蕾) electric three-wheeled motorcycle. The firm said it will cooperate with Xiaomi to resolve follow‑up matters and avoid further misunderstandings. Meanwhile, CNIPA publication of the withdrawal is expected to make the change official.

Why this matters

Why does a small three‑wheeler maker’s action matter to global readers? China’s electric vehicle sector is fiercely competitive and increasingly litigious over design and technology as new entrants such as Xiaomi expand into autos. Intellectual property disputes are now a routine part of that ecosystem, and domestic outcomes and precedents can influence how foreign firms view collaboration and risk in the broader Chinese market.