BEIJING, January 19 (TMTPOST) — Guangdong-based appliance maker Midea Group (SHE: 000333) plans to tap into at least half of the supply chain of mainstream NEV (new energy vehicle) businesses around the world, Chen Jintao, general manager of Midea Group’s vehicle component subsidiary said.

In the past four years, Midea’s vehicle component arm had been focusing on acquiring its first client, the company said. According to Midea, the company tested on thousands of NEVs to test the reliability of its products in the past six months.

In the coming three years, the company will shift its focus from core components to integrated components. After that, the company will work to become a NEV system solution provider.

Midea’s president and board chair Fang Hongbo stated that the NEV sector will be an important direction for Midea in the future. According to Fang, Midea plans to drive its growth through its new business strategy.

“It is a long process from product R&D to product line development and mass production, let alone gaining recognition in the market,” Chen said. “Since May 18 in 2021, our three main product lines had been tested for over six months to ensure product reliability. In 2022, we are entering a relatively mature phase. Clients in the car business follow a project cycle. As the clients start to produce their new vehicles, Midea’s vehicle components will also enter the market.”

Midea’s five vehicle component products from its three product lines have all been tested on vehicles. Each product is supported with a production capacity of tens of thousands. “Thermal management, electric drive and smart driving will see new product lines entering operation. Our production capacity can double after the new product lines are built,” Chen said.

Statistics show that the thermal management, electric drive and smart driving market in China will reach a scale of over 100 billion yuan by 2025. The global market on the other hand will grow to 300 billion yuan. Midea’s vehicle component arm aims to achieve revenue of 10 billion yuan in the future five years.

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