Amid the wave of cross-border car manufacturing, Xiaomi and Huawei have led the way, followed by Foxconn, and this time Gree Electric has once again become the focus. On October 11, the establishment of Shanghai Gree Automotive Technology Co., Ltd. was like a stone thrown into a calm lake, rippling the water's surface. This newly established company, with a registered capital of RMB 20 million, boasts a broad range of business operations, encompassing cutting-edge fields such as industrial internet data services, smart robot research and development, and software development. Notably, it has explicitly included the research and development of automotive components within its scope.

Gree's move undoubtedly signals to the outside world its renewed entry into the automotive arena. Looking back at Gree's previous forays into car manufacturing, the journey has been fraught with setbacks. In 2019, Gree partnered with WM Motor, but this collaboration ultimately fizzled out, and WM Motor later declared bankruptcy. Undeterred, Gree formally entered the vehicle manufacturing sector by acquiring shares in Yinlong New Energy. However, this attempt ended in a bitter loss of billions, becoming a hot potato for Dong Mingzhu.

Yet Gree has clearly not given up. In recent times, the company has been intensively researching automotive batteries and related businesses, and has achieved tangible results. Previously, Gree successfully developed a new energy electric van. Although the new vehicle garnered little interest upon its launch at a price of RMB 158,000, its second-hand value retention rate is quite remarkable, currently hovering between RMB 50,000 and 60,000, almost unchanged from the previous year. This market performance undoubtedly bolsters Gree's confidence in once again entering the automotive sector.

Moreover, Lei Jun's successful debut in the automotive arena has provided Gree with a compelling success story. As a technology giant with a solid foundation similar to Xiaomi's, Gree is unlikely to sit idly by while Xiaomi thrives in the automotive industry. Therefore, Gree's announcement of its renewed entry into the automotive sector is not surprising.

However, Gree's move has met with considerable skepticism in the market. While Gree possesses both vehicle manufacturing qualifications and substantial battery reserve technology, the automotive industry has undergone significant changes. Competition is increasingly fierce, and the landscape is constantly evolving. Is it too late for Gree to enter the fray at this point?

In my opinion, Gree's move is not blind imitation. It has its own strategic plan and market positioning. Whether as a vehicle manufacturer or a deeper-level automotive component supplier, Gree possesses its own advantages and potential. After all, Gree's leadership in the field of refrigeration and air conditioning equipment has demonstrated its prowess in technology research and development and manufacturing capabilities.

Therefore, we may not need to dwell excessively on whether Gree will manufacture vehicles or merely serve as a supplier. What matters is that Gree has once again taken a step forward in entering the automotive industry.