China’s automotive sector is notorious for its cutthroat competition, but that hasn’t deterred Dreame. After nearly a year of speculation, the smart hardware company confirmed in late August that it is officially entering the car business.
On August 28, Dreame announced it was incubating an automotive project with the goal of creating what it claims will be the first truly global luxury car brand. Its debut model, an all-electric vehicle, is scheduled to launch in 2027. Unlike other emerging automakers that initially benchmarked BMW, Mercedes-Benz, or Audi, Dreame has set its sights much higher: its first car will measure itself against the Bugatti Veyron. Once hailed as the fastest car in the world, the Veyron sold for up to RMB 25 million (USD 3.5 million) when it entered China in 2008. Few brands in the industry’s century-long history have carried similar weight.
Dreame said its automotive team is not simply replicating legacy luxury marques but creating an artificial intelligence-powered terminal that will redefine high-end cars around smart interaction. The company pledges to maximize user experience with intelligence at the core.
Leveraging its proprietary high-speed digital motor, Dreame promises its first electric supercar will deliver unmatched power. The company has already assembled a nearly 1,000-person team for the project and plans further expansion. Its ambition: to build the fastest, highest-performing luxury car in the world.
Dreame’s “Apple opportunity”
The company’s story begins with its founder Yu Hao, often described as a technology obsessive who turned engineering breakthroughs into business success. From the outset, Dreame’s strategy in robot vacuums was to solve the hardest problems: designing a product that could scale to millions of homes while maintaining a strong technology moat. Its bet on high-speed digital motors became a key differentiator. Eventually, the team achieved mass production of motors spinning at 200,000 revolutions per minute, double its early output.
According to All View Cloud, Dreame ranked first in online sales of robot vacuums priced above RMB 5,000 (USD 700) for two consecutive years from 2023–2024.
In just a few years, Dreame has expanded aggressively. Its robot vacuums and floor-cleaning appliances are now sold in over 100 countries, supported by 6,000 retail outlets and used by around 30 million customers.
In consumer electronics, Dreame capitalized on what it calls the “Apple opportunity.” Rather than competing on price, it leveraged China’s supply chain to produce high-end devices with premium technology that command greater margins globally. This approach positioned Dreame as one of the few Chinese hardware brands able to compete with Dyson at the top end of the market.
But cars are a different business. To some, Dreame’s entry into automotive looks reckless, or even opportunistic. Yu pushes back, reportedly telling senior candidates in recruitment interviews that “building cars is [Dreame’s] top priority right now.”
In fact, Dreame’s automotive ambitions stretch back more than a decade. The team once considered entering the sector but shelved the plan after estimating startup costs of RMB 20 billion (USD 2.8 billion) were too steep. Today, it believes the timing is finally right.
Why now?
Dreame’s confidence comes from its belief that every era produces its own defining companies, shaped by unique opportunities. It sees three advantages in today’s environment: a window for Chinese brands to move upscale, global markets more open than ever to newcomers, and a domestic supply chain plus talent base unmatched worldwide.
The company envisions another “Apple-like” opportunity, this time in cars. By combining China’s supply chain with global high-end channels, Dreame aims to create a Chinese brand with global prestige.
Competing on all fronts
Cars are often described as money pits, so how will Dreame handle the enormous financial demands? Its philosophy: spend precisely, and only on products with inherent business value. If a car lacks that value, even RMB 100 billion (USD 14 billion) wouldn’t be enough. But for the right car, Dreame believes RMB 20–50 billion (USD 2.8–7.0 billion) could suffice.
The company is betting high-net-worth buyers will flock to its offering because it will meet an unmet demand: the fusion of luxury and smart technology.
The current luxury car market is dominated by marques like Bugatti and Bentley, which have been slow to adopt electrification and intelligent systems. Tesla, by contrast, leads in electric vehicles and autonomous driving but remains a tech-centric brand with mass market leanings, making it less of a bespoke luxury choice. Chinese automakers expanding overseas have largely targeted affordability and midrange segments, leaving the luxury niche largely untouched. Dreame sees an opening.
Its first model aims to rival Bugatti in performance while integrating Dreame’s strengths in sensor fusion, human-machine interaction, and personalization. As of late 2024, the company had filed 6,379 patents worldwide, 45% related to EV technologies.
Equally important, Dreame already has access to global high-end consumers through its 6,000 international retail outlets. The company believes this network will reduce customer acquisition costs when it launches its first car in 2027.
Still, Dreame knows that in cars, product alone is not enough. Its strategy is to outperform rivals across every key dimension—price, range, smart features, and beyond—by a clear margin. Just as important, it aims to innovate rather than imitate.
Cars as the ultimate proving ground
Some critics argue Dreame is late to the game. The company counters by pointing to its record of succeeding as a late mover. It entered the robot vacuum market three years after Roborock and two decades after Ecovacs Robotics, yet expects its 2025 revenue to surpass Ecovacs and its profit to exceed Roborock’s.
Dreame is betting on its philosophy that latecomers can win if they time technology upgrades and market shifts correctly. With global car electrification accelerating, it sees a rare chance to leapfrog.
Even so, the company says it is approaching automotive with humility. It acknowledges that making cars requires more than ambition. Unlike home appliances, automotive is a field where a single misstep can be fatal.
Still, Dreame views cars as the ultimate test of its accumulated strengths in technology, supply chain, branding, finance, and organization.
In that sense, the car project mirrors a broader trend in Chinese manufacturing: moving upscale and going global by leveraging a mature domestic supply chain and proven branding power. But the hurdles are significant, ranging from entrenched brand barriers in luxury cars to supply chain complexity and heavy capital demands.
By 2027, when Dreame plans to roll out its first model, the competitive landscape for EVs and luxury vehicles may look very different. Whether the company can replicate its consumer electronics success in this ultimate test remains uncertain.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Xiao Xi for 36Kr.