Midea plans to provide new energy vehicle system-level solutions

According to the industry media today's news, the relevant person in charge of the Midea Group revealed that the auto parts company that was recently invested and established will build a new production base, which is a plan for the next 10 years.

It is worth noting that Midea Group invested in the establishment of "Anqing Welling Auto Parts Co., Ltd." last week, which includes: auto parts and accessories manufacturing; auto parts research and development; auto parts wholesale. However, there is no accurate source of information to reveal that the parts company that will build a new production base is "Anqing Welling Auto Parts Co., Ltd."

It is understood that midea group has three product lines of thermal management, electric drive and intelligent driving, and will break into the supply chain of half of the world's mainstream new energy vehicle customers this year, and plans to provide new energy vehicle system-level solutions in the future.

Image source: Midea Welling Cars

According to public data, by 2025, the market size of electric drive, thermal management and intelligent driving in China will exceed 100 billion yuan, and the global market size will exceed 300 billion yuan. Among them, Midea Welling Auto Parts aims to achieve a revenue scale of 10 billion yuan in the next 5 years.

In addition, it is worth mentioning that the head of the Group of the United States said in an interview that the company aims to ship 80 million chips in 2022, in addition to MCU chips, the future plans to cover power chips, power chips, IoT chips and other home appliances chips, and plans to lay out automotive chips.

Relevant market sources revealed that at present, Midea's self-developed MCUs are entry-level products, mainly used for their own home appliances, which are different from the types of automotive chips. For vehicle-grade chips, the group may not be able to reach mass production in 2024.

Generally speaking, the profit margin of auto parts is higher than that of the whole vehicle. According to the 2008-2010 net interest rate statistics of 26 automotive listed companies and 60 auto parts listed companies in mainland China, the average net interest rate of listed parts companies in the past three years is higher than the average level of vehicle companies, and the net interest rate gap between the two has further widened in 2009 and 2010.

There are many examples of leading home appliance companies entering the automotive industry, and it is true that the route chosen by Midea now is not the same as that of Gree and Skyworth - starting from auto parts. To some extent, the number of roads between midea and Huawei is more similar.