Chinese vacuum maker Dreame withdraws ‘Star Project’ to expand into EVs
The logo of Dreame at its booth during the Beijing International Automotive Exhibition (Auto China), in Beijing, China April 24, 2026. REUTERS/Tingshu Wang
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
BEIJING, Aug 26 : Chinese vacuum cleaner maker Dreame has withdrawn a highly publicised project to launch luxury electric vehicles next year, describing the decision as a “proactive strategic choice” in a statement on Wednesday.
Codenamed “Star Project”, Dreame launched the plan to expand beyond domestic products in 2025 and said its goal was to build the world’s fastest car.
It also outlined plans in February for showrooms across the Middle East, including in Iraq, Saudi Arabia, the UAE and Qatar.
Chinese automakers, meanwhile, have embarked on an intense price war.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Dreame said it had reviewed the auto industry’s R&D and production cycle, sustained investment intensity, market competition, as well as other factors.
EXPERTISE AND OTHER ASSETS TO BE REDEPLOYED WHERE POSSIBLE
“The company has decided not to advance the automotive project as an independent business unit at this stage,” it said in a statement to Reuters.
It said the EV project had not entered commercial mass production or involved significant heavy-asset investment, meaning withdrawing it would have no “material adverse impact” on the company’s operations or financial condition.
Intellectual property, technical expertise and other research outcomes generated by the project would be redeployed where possible across areas including smart mobility, robotics and its broader R&D platform, the company said.
It added that investments, staffing arrangements and financial matters related to the project would be handled prudently without giving further details.
The venture’s workforce, which peaked at nearly 1,000 employees, has been reduced to a few dozen staff handling tasks, including supplier settlements and corporate deregistration, the state-owned Economic Daily reported on Monday.
Senior executives have begun seeking opportunities elsewhere, while rounds of layoffs and resignations had left large sections of the project’s offices vacant, business outlet Yicai reported over the weekend.
COMPANY SAYS CORE BUSINESS IS OPERATING NORMALLY
In a statement posted on Weibo on Tuesday, Dreame said it had adjusted some exploratory businesses as part of a broader strategic refocus and would integrate related technologies, research results and resources into its core operations.
Dreame added that it would concentrate on four core areas: smart homes, outdoor living, smart mobility and embodied AI, without specifically addressing reports that it was exiting vehicle development.
“At present, the company’s core product R&D, production, sales, delivery and after-sales services are operating normally, and its domestic and overseas businesses are progressing according to plan,” the company said.
Dreame showcased its Nebula NEXT 01 sports coupe and NEXT 01X luxury SUV concept vehicles at the Beijing auto show in April and May.
It also aired a 30-second Super Bowl advertisement in February promoting its automotive ambitions. The commercial, which cost $10 million, featured a vacuum cleaner, lawn mower and futuristic sports car transforming into robots before hurling a flaming ball.
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
About The Author
