China’s EV market: top appliances maker Midea’s US$1.7 billion car parts plant eyes market’s exponential growth
- Shenzhen-based company is building an 11 billion yuan (US$1.74 billion) factory to make EV components to meet growing demand for green cars
- Plant will be capable of generating 60 billion yuan worth of parts annually, including power steering motors and thermal management systems
The group said it has started construction on a plant in Anqing in eastern Anhui province, capable of producing 60 billion yuan worth of parts annually, including power steering motors, thermal management systems and driving assistance systems.
It did not disclose when the plant will be operational. Midea, based in Foshan in southern Guangdong province, would not be directly involved in assembling EVs, it said when first declaring its plan in May last year.
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“A shortfall of car components is expected in China given the soaring demand for intelligent cars powered by batteries,” said Phate Zhang, founder of Shanghai-based technology portal CnEVpost. “Big industrial names including Midea are seriously implementing their plans to move into the area to tap the huge market potential.”
Midea is the most valuable white-goods producer with 505.3 billion yuan in market capitalisation. The stock has declined 4.1 per cent this year, bringing the losses in the past 12 months to 26 per cent. Still, it has risen by 123 per cent over a five-year period.
