Midea expands into new-energy car market
Midea is to produce auto parts as the home appliance giant expands into the booming new-energy car sector, the Shenzhen-listed firm said on Wednesday.
Technology giants Huawei, Xiaomi and Baidu recently announced similar plans to target the booming smart and electric car sector in China.
Media’s subsidiary Welling is to start volume production of new products that include electronic water pumps, electronic oil pumps, electric compressors and electric power steering motors.
Through Welling, Midea has invested over US$100 million in the car-related business. Welling has produced air-conditioning compressors for vehicles and has been involved in auto parts research for several years.
Midea, one of China's top two air-conditioner makers, has a market value of 540 billion yuan (US$83 billion).
Its experience in home appliances and air-conditioners can be adapted for the new-energy car sector, especially in a cold weather environment, the company said.
The new auto parts business represents business expansion in enterprise-oriented sectors, with car markets, digital factories and real property firms as clients.
In the long term, Midea’s enterprise-oriented business will surpass 200 billion yuan, Fang Hongbo, Midea’s chairman and president, said recently.
In the first four months, China’s new-energy car sales jumped 40 percent to hit 1.8 million units, making the country one of the world’s fastest-growing markets.