On September 12, Dreame Technology (Suzhou) Co., Ltd. announced that its automotive brand, Dreame Auto, has completed its first round of financing. The company did not disclose the investment amount or investors but stated that the funds will be used to support its factory construction project in Germany and to advance its global strategic initiatives.
German Factory Plans
Dreame Auto is currently selecting a site for its new plant adjacent to Tesla’s German factory. The new facility is expected to be 1.2 times larger than Tesla’s Berlin plant. The decision aims to leverage the region’s mature automotive supply chain in precision manufacturing, electronics, and materials science, while reducing logistics costs, shortening R&D cycles, and strengthening localized supply chain efficiency in the European market. Reports suggest that Dreame is in talks with BNP Paribas to jointly promote the construction of the German plant and its global market expansion.
Background of Dreame Technology
Founded in 2017 as part of Xiaomi’s ecosystem, Dreame later established its own brand and expanded into global markets. Its product portfolio includes robotic vacuum cleaners, cordless vacuum cleaners, smart floor washers, and high-speed hair dryers. Dreame products are now sold in over 100 countries and regions, with placements in more than 6,000 offline retail stores worldwide, making it one of China’s leading smart home cleaning appliance companies.
Entry into the Automotive Industry
On August 28, Dreame formally announced its entry into the automotive sector, joining the ranks of Chinese home appliance companies crossing over into car manufacturing. In an open letter, the company declared its ambition to build the world’s fastest car, with its first ultra-luxury pure electric model benchmarked against the Bugatti Veyron and planned for release in 2027. On September 10, founder Yu Hao shared three renderings of the model on social media, confirming that a prototype will debut at CES 2025.
According to internal communications, Dreame’s automotive team has been preparing since 2013—“a twelve-year plan”—and expressed both determination and humility. The company has already built a near-1,000-person R&D and manufacturing team, with expansion ongoing. By the end of 2024, Dreame had filed 6,379 global patent applications, 45% of which were invention patents, covering core smart automotive fields such as sensor fusion, motor control, and human-machine interaction.
Challenges Ahead
While Xiaomi Auto’s early success has inspired many peers, Dreame faces major challenges. Building the world’s fastest production car is daunting: the current record holder, the Bugatti Chiron Super Sport 300+, reaches a top speed of 490 km/h but is limited to just 30 units globally. Creating an even faster car would require massive investment, yet Dreame has not gone public and faces uncertain funding capacity. Moreover, whether there will be sufficient buyers for such an ultra-expensive product remains an open question.
Industry insiders have also warned of the fierce competition. In a podcast, He Xiaopeng, founder of XPeng Motors, remarked: “China’s auto industry elimination race will last at least another five years. No company can claim to have secured its ‘ticket’ yet. If you really want to hurt a friend, just convince him to start building cars.”
