Photo/Dreame website

On August 28, Dreame Technology, a company known for high-speed digital motors and smart home devices, announced its plan to enter the automotive industry. The company's first ultra-luxury pure electric car, designed to compete with the Bugatti Veyron, is set to debut in 2027.

According to the company, this move isn't an impulse decision but the culmination of a plan that has been in place since 2013.

A representative with Dreame told National Business Daily (NBD) that the timing is considered ideal due to three key factors:

External: The representative stated that in the hardware industry, timing is more critical than a "first-mover" advantage. A late entry allows the company to learn from others' mistakes and leverage a latecomer's advantage.

Internal: Dreame now has the necessary financial and strategic resources for a move of this scale.

International: With China's manufacturing sector rising globally, Dreame sees an opportunity to create a world-class brand.

The company believes its entry is well-timed because China's mature automotive supply chain provides three major opportunities for newcomers: brand premiumization, global expansion, and a new organizational culture. Despite fierce competition, Dreame is confident that its strategic, long-term approach will allow it to succeed in this highly complex industry.