Gasgoo.com (Shanghai October 9th, 2016) Gree Electric’s suspension notice on March 6th, along with the notices revealing its transaction deal of purchasing 100% shares of Yinlong Alternative Energy Vehicles with a price of RMB 13b on August 23th, mark that the electric appliance industry, represented by Gree Electric, will march into the auto manufacturing industry for a second time.
Ten years ago, domestic electric appliance industry had tried to produce vehicles, but most companies faced failures in two or three years. Ten years later, the industry has welcomed another wave of producing cars, facing the historical opportunity of alternative energy vehicles. Huang Hongsheng, founder of Skyworth, targeted at Nanjing King Long, which stands a position in alternative energy bus market. Chunlan Electric Appliance also enters the auto manufacturing area, focusing on alternative energy cars.
It’s quite understandable why electric appliance industry is trying to enter into the alternative energy market. In fact, electric appliance industry is gradually touching its market ceiling in development. Alternative energy vehicle market may be the best choice when it considers how to transfer and expand the industry’s manufacturing ability and research strength. Currently, China is the largest global alternative energy auto market, the high growth and large market size of which also attract above companies to enter into the area.
But the market has great doubts on whether Gree would successfully transform into the auto industry or not. Dong Mingzhu responded that, Gree’s development route is different from the current mainstream techniques, but choosing Lithium Titanate Batteries instead. “Lithium Titanate batteries and Yinlong are golds buried in sands. We are going to dig them out.” She also said that, Gree has made full preparations in electric control systems, intelligent manufacturing, electric motors and precise instruments, and it would match with Yinlong in all parts except for batteries. That’s the reason why Dong would like to bet greatly on alternative energy vehicles.
But most past examples have shown that entering into a new field is more difficult than the previous imagination. We are waiting for Dong and Gree’s practical actions.
