In-Depth Feasibility Analysis Report on Dreame's Cross-Industry Venture into Automobile Manufacturing

Based on the collected information, I now provide you with a systematic and comprehensive analysis report.

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Dreame is a leading Chinese intelligent cleaning appliance enterprise founded in 2015 by Yu Hao, a graduate of Tsinghua University’s School of Aeronautics and Astronautics [1][2]. Its core products include robotic vacuums, wet/dry vacuums, cordless vacuums, and personal care small home appliances, and it has grown into a key player in the global intelligent cleaning appliance industry.

Indicator	2024	2025 (Forecast)
Revenue	15 billion RMB	Exceed 30 billion RMB
Overseas Revenue Share	53%	Approximately 58%
Valuation	20 billion RMB (Global Unicorn List)	30-40 billion RMB
Gross Margin	35%-40%	Remain Stable

• Global robotic vacuum market share ranks 3rd (12.4%) [3]
• Europe wet/dry vacuum market share exceeds 50% (Switzerland, Sweden, etc.)
• Products cover over 100 countries, with over 6,000 offline stores
• Served over 30 million households cumulatively, with membership exceeding 11 million [4]

On August 28, 2025, Dreame officially announced its entry into the automobile manufacturing industry, proposing to “build the world’s fastest car”. Its first mass-produced vehicle targets the

(supercar) and (ultra-luxury SUV), and is scheduled to debut in 2027 [5][6].

Project	Specific Content
Announcement Date	August 28, 2025
First Mass-Production Time	2027
Factory Location	Berlin, Germany (near Tesla Gigafactory)
R&D Team Size	Nearly 1,000 people (expanding continuously)
OEM Mode	Light-asset OEM + overseas distribution
First Round of Financing	Completed 2 weeks after announcement
Order Amount	Over 15 billion RMB revealed at strategic partner conference

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Dreame’s core technological advantages have high migration adaptability with the automotive industry, which is the underlying logical support for its cross-industry automobile manufacturing:

Dreame’s Core Technology	Corresponding Automotive Module	Migration Feasibility
High-Speed Digital Motor (200,000 RPM)	Electric Drive System	High - Motor technology can be directly applied to motor drive
AI Algorithms	Intelligent Cockpit	Medium-High - Software algorithm capabilities can be reused
Robotic Sensing and Control	Autonomous Driving	Medium-High - Environmental perception and decision-making logic are similar

The company has accumulated

and cumulatively, forming a relatively solid technical reserve [4]. Founder Yu Hao is one of China’s earliest quadcopter developers and the inventor of the tricopter, whose technical background provides talent foundation for the cross-industry venture [7].

After years of international layout, Dreame has established a global sales network, which is a differentiated advantage that other new car manufacturers can hardly match:

• Global Coverage
  : Over 100 countries and regions
• Offline Stores
  : Over 6,000 high-end stores
• User Base
  : 30 million household users, 11 million members
• Brand Perception
  : Established high brand premium capability in the European high-end market

This channel advantage can significantly reduce the “user education” cost of the automobile business, achieving precise conversion from intelligent home appliance users to potential car buyers [8].

Dreame has demonstrated strong capital operation capabilities, providing financial support for the automobile manufacturing project:

• Completed
  5 billion RMB
  of old share repurchase in 2024-2025, with the founder’s shareholding ratio increased to
  70%
• Invested
  2.28 billion RMB
  to acquire shares of Jiamei Packaging, reserving a capital platform for business spin-off and listing [3]
• The first round of financing for the automobile manufacturing project was completed quickly, with
  15 billion RMB
  in order commitments obtained at the strategic partner conference [4]

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Dyson and Dreame are highly similar in technical paths – both excel in high-speed motor technology, and both attempt to migrate home appliance technology to automobiles. Dyson’s failed automobile manufacturing provides the most direct warning for Dreame:

Comparison Dimension	Dyson	Dreame (Plan)
Investment Scale	2 billion GBP (approx. 18.2 billion RMB)	Not disclosed, expected to exceed 10 billion RMB
R&D Cycle	2017-2019 (2 years)	2025-2027 (2 years)
Team Size	600 people	Nearly 1,000 people
Automobile Manufacturing Result	Failed	To be verified

Dyson’s core reasons for failure [9][10]:

1. Manufacturing costs far higher than traditional automobiles
   , with meager or even no profits
2. Unable to compete with giants
   – Volkswagen and Tesla invest tens of billions of US dollars annually
3. Technological leadership ≠ commercial success
   – Supply chain costs, economies of scale, and brand premium are all indispensable
4. Missed time window
   – Failed to commercialize in time

Dyson founder James Dyson admitted: “We simply couldn’t make it commercially viable.”

Automobile manufacturing is a typical

industry. Referring to industry experience:

Enterprise	Cumulative Automobile Manufacturing Investment	Profit Cycle
Tesla	Tens of billions of US dollars	Achieved sustained profitability 17 years after its establishment
NIO	Over 50 billion RMB	Has not yet achieved stable profitability
Xiaomi Auto	Approximately 10 billion RMB	Delivered over 410,000 units in the first year

Dreame’s 2025 revenue forecast is approximately 30 billion RMB, but the automobile manufacturing project may require

continuous investment, which will test the company’s cash flow and main business profitability [11].

According to the regulations of the Ministry of Industry and Information Technology, both the entrusting party and the entrusted party must have production qualifications. Currently, Dreame:

• Has not obtained independent production qualifications
• The OEM partner has not yet been determined (rumors of cooperation with Chery were previously circulated but later denied)
• Needs to rely on qualified traditional automobile manufacturers for OEM production [12]

The new energy vehicle market has entered the

:

• October 2025
  , the penetration rate of new energy vehicles in China exceeded
  51.6%
  for the first time, and the market is maturing rapidly
• 2026
  , the new energy vehicle purchase tax subsidy will
  decline
• Traditional giants (BYD, Tesla) and new forces (Li Auto, XPeng, HarmonyOS Intelligent Mobility) have established scale advantages
• Capital support is decreasing, and
  the opportunity window for new players is almost closed
  [13]

When Dreame’s first model is mass-produced in 2027, market competition will be even fiercer.

The brand transition from

to faces huge challenges:

• Consumers perceive Dreame as a “high-end home appliance brand”, not a “luxury automobile brand”
• The ultra-luxury car market has extremely high requirements for brand history, craft heritage, and social attributes
• Brands such as Bugatti and Rolls-Royce have a century of history and cultural heritage [8]

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Camp	Representative Enterprises	2025 Sales Volume	Competitive Advantages
Traditional Giants	BYD	4.6 million units	Vertical integration, economies of scale
Foreign Benchmarks	Tesla	1.636 million units	Brand, technology
New Car Manufacturers	Leapmotor	597,000 units	Cost-effectiveness, intelligence
Technology Giants	HarmonyOS Intelligent Mobility	589,000 units	Empowered by Huawei ecosystem
Cross-Industry Newcomers	Xiaomi	410,000 units	Brand fans, channels

: CR3 enterprises’ market share exceeds 40%, CR10 exceeds 85% [14].

Enterprise	Main Business	Automobile Manufacturing Progress	Result Assessment
Dyson	Home Appliances	Invested 18.2 billion RMB	Failed (Abandoned in 2019)
Apple	Consumer Electronics	Invested approximately 10 billion US dollars	Abandoned (Terminated in 2024)
Xiaomi	Consumer Electronics	First model SU7 succeeded	In progress (Exceeded expectations)
Huawei	Technology	Smart Selection model succeeded	In progress (Already profitable)
Polestones	Home Appliances (Roborock)	Sluggish deliveries	Struggling to sustain

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Dimension	Content
Strengths	Technological homology, global channels, capital operation capability, high-end brand image
Weaknesses	Lack of automobile manufacturing experience, no production qualifications, brand perception transition, insufficient team experience
Opportunities	Vacancy in the ultra-luxury electric vehicle market, advantages of Chinese supply chain, gaps in the European market
Threats	Intensified competition from giants, closing time window, capital consumption, lessons from Dyson’s failure

Based on multi-dimensional assessment, Dreame’s automobile manufacturing success probability is as follows:

Scenario	Probability	Key Assumptions
Optimistic Scenario	Approximately 15%	Stable OEM cooperation secured, continuous financing obtained, smooth mass production in 2027, ultra-luxury positioning recognized
Base Scenario	Approximately 8%	Progress as planned, but faces fierce competition, requires years of continuous losses
Pessimistic Scenario	Approximately 3%	Cash flow strain, OEM hindered, market response below expectations, repeating Dyson’s failure

1. OEM Cooperation Implementation
   : Must find a qualified OEM manufacturer with sufficient production capacity
2. Continuous Financing Capability
   : Automobile manufacturing requires 10-billion-level investment, which cannot be supported by the main business alone
3. Differentiated Positioning
   : Although the ultra-luxury market has less competition, brand trust needs to be established
4. Technology Implementation Verification
   : The migration from home appliance motors to automotive electric drives needs market verification

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• ✅ Technologically
  feasible
  , with core technologies having migration space in electric drive systems and intelligent cockpits
• ✅ Global channels are a
  unique advantage
  , providing a ready-made network for automobile overseas expansion
• ❌ Commercially
  extremely challenging
  , as the Dyson case proves technological leadership does not equal commercial success
• ❌ Time window is
  extremely unfavorable
  , as the market will have entered the knockout stage when mass production begins in 2027
• ❌ Brand perception transition is
  extremely difficult
  , and building trust from home appliances to million-level luxury cars takes time

. However, if adopting the “light-asset OEM + overseas distribution” model, focusing on niche markets, and advancing pragmatically, there is still a glimmer of hope.

1. Cash Flow Risk
   : The automobile manufacturing project may consume main business profits, affecting the development of core businesses
2. Resource Diversion Risk
   : Parallel operation of multiple business lines (mobile phones, robots, drones) may lead to neglect of key areas
3. Valuation Correction Risk
   : If the automobile manufacturing progress falls short of expectations, it may lead to a revaluation of the company’s overall valuation
4. Founder Risk
   : Yu Hao’s “either world’s first” philosophy may lead to aggressive expansion

Recommendation	Specific Measures
Focus Resources	Postpone new businesses such as mobile phones and drones, and fully support the automobile manufacturing project
Pragmatic Positioning	Consider shifting from “ultra-luxury” to “high-end intelligent electric vehicles” to expand potential customer groups
Accelerate OEM Negotiations	Determine the OEM partner as soon as possible to resolve the production qualification issue
Control Pace	The first model should not overly pursue “Bugatti-level targeting”; first establish market presence

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[1] Caifuhao - Analysis of Dreame’s Current Valuation and Future Potential (https://caifuhao.eastmoney.com/news/20251010200354339110170)

[2] Ebang Power - Yu Hao’s Trillion-Dollar Vision (https://m.ebrun.com/636407.html)

[3] Sina Finance - Dreame’s Yu Hao Acquires Jiamei Packaging for 2.28 Billion RMB (https://finance.sina.cn/2025-12-23/detail-inhcucqs0885935.d.html)

[4] Xinhua Daily - Dreame Secures Over 15 Billion RMB in Orders One Month After Announcing Automobile Manufacturing (https://www.xhby.net/content/s68ef382be4b00d37c245507e.html)

[5] Securities Times - What Gives the “Latecomer” Dreame the Confidence to Enter Automobile Manufacturing (https://stcn.com/article/detail/3303014.html)

[6] Unifuncs - In-Depth Research Report on Dreame’s Automobile Manufacturing Prospects (https://unifuncs.com/s/VwnMzSm1)

[7] The Paper - Dreame Goes to Germany to Select a Site for Its Automobile Factory (https://m.thepaper.cn)

[8] 36Kr - In-Depth Analysis of Dreame’s Cross-Industry Venture into Automobile Manufacturing

[9] Sina Auto - Dyson Abandons 18.2 Billion RMB Automobile Manufacturing Project (https://auto.sina.cn/news/hy/2019-10-28/detail-iicezzrr5424335.d.html)

[10] Sohu Auto - Failed Cases of Outsiders Entering Automobile Manufacturing from Dyson to Apple (https://www.sohu.com/a/820908156_121124483)

[11] China Entrepreneur Magazine - Dreame’s Yu Hao: The Ecological Ambition of a Tech Fanatic

[12] Caixin Weekly - How the Automobile Industry Can Move Forward

[13] Phoenix Weekly - 2025 Auto Market Wrap-Up: Leapmotor Leads New Car Manufacturers (http://ifengweekly.com/detil.php?id=26013)

[14] Qianzhan Industry Research Institute - Analysis of the Competitive Landscape of China’s New Energy Bus Industry (https://www.qianzhan.com/analyst/detail/220/260115-bc9f5fb5.html)

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• Top Left
  : Assessment of Dreame’s core advantages in automobile manufacturing, with technological homology and global channels scoring the highest
• Top Right
  : Risk factor assessment, with production qualification and capital demand risks being the most prominent
• Bottom Left
  : Comparison of cross-industry automobile manufacturing cases, with Dyson’s failure, Apple’s abandonment, and Dreame’s pending verification
• Bottom Right
  : Success probability forecast, with an approximately 8% success probability in the base scenario