On August 28, 2025, intelligent cleaning company Dreame Technology officially announced its entry into car manufacturing, claiming it will build "the world's fastest car." The company's first ultra-luxury pure electric vehicle will directly compete with Bugatti Veyron, with plans to debut in 2027.

Dreame Technology originated from Tsinghua University's "Sky Factory" innovation community and was formally established in 2017. With high-speed digital motor technology as its core, it has gradually developed into a leading enterprise in the global intelligent cleaning sector.

**Dreame's Confidence: Technical Accumulation and Global Expansion**

Dreame's venture into automotive is not an impulsive decision. According to official disclosure, the team wrote their first car manufacturing business plan at Tsinghua Sky Factory as early as 2013. Twelve years later, Dreame believes it has reached its "destined moment."

Dreame has accumulated rich technical experience in intelligent hardware, particularly in high-speed digital motors, intelligent perception, and AI algorithms. By the end of 2024, Dreame had applied for 6,379 patents globally, with 45% being invention patents.

These patents cover core intelligent automotive fields including sensor fusion, motor control, and human-machine interaction, providing a technological foundation for its car manufacturing venture.

Dreame's global expansion also provides channel support for car manufacturing. The company has established 6,000 offline channels across over 100 countries worldwide, serving 30 million users.

It has achieved top market share in more than 20 countries and regions. These resources will provide potential support for the communication, experience delivery, and after-sales service of its high-end automotive brand.

**Severe Challenges: Funding, Qualifications, and Market Competition**

Car manufacturing is a long-cycle, heavy-investment, slow-return industry. China's new energy vehicle industry has entered an elimination phase, with leading automakers accelerating production expansion, price cuts, and overseas expansion while smaller players continue to exit.

Dreame has not yet gone public, limiting its financing capabilities. Facing the capital requirements of hundreds of billions of yuan for new energy vehicles, there is significant uncertainty about whether its asset-light model can truly support mass production.

Dreame's core vacuum cleaner business also faces pressure. In 2024, Dreame's global robot vacuum market share was approximately 8%, ranking fifth. Although 2024 revenue reached 15 billion yuan, nearly doubling from 2023, gross profit margins decreased by 6 percentage points, and the average price of cleaning appliances dropped by 12%.

Automotive qualification is another key issue. Although Dreame established "Star Plan (Shanghai) Automotive Technology Co., Ltd." in January this year with registered capital of 1 billion yuan, how to obtain manufacturing qualifications remains unknown. Reports suggest that Star Plan may borrow production qualifications from SAIC Motor.

**Strategic Layout: Left-Right Hand Model and Ultra-Luxury Positioning**

Dreame's car manufacturing adopts a unique "left-right hand model" strategy. According to reports, Dreame founder Yu Hao first proposed this strategy at a recent monthly meeting.

The "left hand" represents ODM business - obtaining authorization for other vehicle models, rebranding them, and selling overseas to generate cash flow. The "right hand" represents self-developed car manufacturing projects, hoping to use "left hand" business to support "right hand" operations.

This model is similar to Dreame's vacuum cleaner business development trajectory - starting with OEM manufacturing for Xiaomi Corp., then gradually developing its own brand.

In terms of product positioning, Dreame chose a differentiation route: directly entering the ultra-luxury electric market, competing with Bugatti Veyron. This positioning avoids direct competition with mass-market electric vehicle brands like Tesla and BYD, capitalizing on the market gap left by the slow electrification transformation of ultra-luxury brands.

According to job website information, Star Plan has numerous overseas-oriented positions open for recruitment. After mass production, they plan to sell overseas first, then transition to the domestic market.

**Reality Constraints: Plan Delays and Internal Chaos**

However, Dreame's actual automotive progress has not been smooth. According to internal sources, Star Plan's first mass-production vehicle is still in the styling review stage. The originally planned February 2027 mass production timeline is no longer mentioned internally.

Over the next few months, the company plans to first launch a batch of prototype vehicles for demonstration and fundraising purposes. These prototypes are "Bentley" and "Cullinan" models modified from Li Auto L9, and "Bugatti" and "Ferrari" models modified from Xiaomi Corp. SU7.

Internal employees describe daily chaos, unable to distinguish whether creating prototypes for fundraising is more urgent or pursuing ODM rebranding for profit. The self-developed project originally scheduled for February 2027 mass production is "no longer urgent at all."

The ODM business also faces challenges. Dreame requires Star Plan to operate independently and be self-sufficient. The ODM business carries the burden of "supporting the family," needing to achieve tens of millions of yuan in quarterly revenue targets.

**Cross-Industry Car Manufacturing Logic and Prospects**

Dreame's car manufacturing reflects the universal need for Chinese intelligent hardware companies to seek second growth curves. As competition intensifies in the cleaning appliance market and gross margins decline, Dreame needs to find new growth opportunities.

Yu Hao once publicly stated that "great enterprises must possess continuous entrepreneurial capabilities." In 2023, he believed that Dreame's chosen direction is actually "generalized robotics," which represents a huge opportunity over the next 10 to 30 years.

New energy vehicles, especially intelligent electric vehicles, are viewed as "four-wheeled robots," naturally becoming Dreame's expansion direction.

However, Dreame faces a different environment than Xiaomi Corp.'s car manufacturing. Xiaomi Corp.'s success in car manufacturing had two key factors: abundant financial reserves allowing large-scale investment, and Lei Jun's personal strong IP with enthusiastic fan support. Dreame lacks both of these critical factors.

**Industry Perspective: New Players in China's Automotive Industry**

Dreame's entry into the automotive industry at this time reflects the maturity of China's new energy vehicle supply chain. Dreame stated in its manifesto: "We are not '0 to 1' adventurers, but stand on the shoulders of Chinese manufacturing giants. Countless Chinese enterprises have forged the world's most mature electric vehicle supply chain and technology ecosystem with ten years of blood and sweat."

This supply chain advantage significantly lowers the barriers to cross-industry car manufacturing. However, industry insiders point out that China's current automotive market cannot accommodate new car manufacturers. XPeng Motors Chairman He Xiaopeng once said that car manufacturing is "swimming in a sea of blood," with most players drowning halfway.

Dreame's positioning in the ultra-luxury market somewhat avoids intense competition in the mass market. The global ultra-luxury automotive market is still dominated by traditional brands like Bugatti and Bentley, but these brands have been relatively slow in advancing electrification and intelligentization.

While Tesla leads in electrification and autonomous driving, its brand positioning still leans toward "democratized technology." This leaves room for Dreame's "differentiated competition."

The ODM business carries the burden of "supporting the family," needing to achieve tens of millions of yuan in quarterly revenue targets. Whether Dreame can leap from the "cleaning appliance miracle" to an "automotive miracle" remains an answer blowing in the wind.