Midea’s car making “fake a shot” is actually releasing new auto parts

Original title: Midea's car making "fake a shot" is actually releasing new auto parts

Midea Group suddenly announced on May 17 that it will release new energy vehicles, and the complete outline of a car is clearly visible on the promotional map. People can't help but wonder, is Midea also building a car?

But in fact, the release of Midea this time is not the complete vehicle, but the auto parts developed by its subsidiary Welling Auto Parts Company, including the source power energy warehouse, lidar and so on.

Some analysts said that Midea’s advantage lies in electromechanical technology, so the new products released this time should be related to this. At the same time, Midea’s main competitor in the electromechanical field, Highly, also announced its entry into the field of auto parts. Midea’s release of new products this time can be considered a response.

Midea tried to enter the automotive field in 2003. From 2004 to 2006, Midea successively acquired three companies: Yunnan Bus Factory, Yunnan Aerospace Shenzhou Automobile Co., Ltd. and Hunan Sanxiang Bus Group Co., Ltd. However, Midea's automobile business has not seen any improvement, so it announced its closure in 2008.

But Midea did not completely give up entering the auto market. In April 2020, Midea Group announced the acquisition of Hekang New Energy Technology Co., Ltd., a high-tech enterprise specializing in industrial automation control and new energy equipment, for 743 million yuan. This acquisition also announced Midea's return to the automotive industry and its entry into the new energy track.

Having learned the lessons of previous failures, Midea will no longer try to manufacture complete vehicles this time, but will focus on auto parts, especially the technical aspects of electromechanical products. The new products released this time are also a continuation of this strategy.

As a new outlet, new energy vehicles have attracted many other industry giants for cross-border development. In addition to Midea, Skyworth, another well-known home appliance brand, also announced that it will enter the automotive industry. Both companies stated that they would not directly build cars. Midea focuses on the development of core components of the car, while Skyworth signed a brand transfer agreement with the car manufacturer to delegate professional matters to professionals.

It can be seen from the practices of Midea and Skyworth that although they have a strong willingness to open up the new energy vehicle market, they have not blindly followed the trend and chose vehicle manufacturing. In this tide of cross-border car building, such calmness is particularly important.