(Yicai Global) May 19 -- Chinese home appliance giant Midea Group has for the first time started mass-producing new energy vehicle parts to seek growth in the booming sector.

The factory in eastern China's Hefei has begun making three products developed by unit Welling Auto Parts, including vehicle drive systems, thermal management systems, and advanced driver-assistance systems, the Foshan-based firm said in a statement yesterday.

Midea's automotive unit also unveiled five upcoming products. Those included some electrical machinery, an electronic water pump, electronic oil pump, electric compressor, and an electric power storage motor.

The home appliance giant is joining a crowd of tech companies, including Xiaomi and Huawei Technologies, that are turning their attention to the rising NEV field. But Midea has been building foundations for the move for long. The white goods maker has invested over USD100 million in the research and development of NEV parts since 2015, said Welling's General Manager Chen Jintao.

"NEV parts are quite similar to home appliance parts," said Fu Yongjun, president of Midea's electromechanical business group. The unit will help carmakers accelerate product innovation and it will expand its capacity through investment to enhance delivery, he added.

Midea adjusted its business structure in late 2020 to expand its corporate business. The firm's business-to-business revenue may exceed CNY20 billion (USD3.1 billion) in the mid or long run due to the sector's development potential after reaching tens of billions of Chinese yuan in 2020, said Chairman Fang Hongbo on May 17.

Welling has set up research and development centers in Shanghai, Hefei, and Guangdong province's Shunde. Moreover, it has partnered with an institution in Japan's Osaka and the University of Sheffield in the UK. The firm has a core technology R&D team with 280 employees and a car parts R&D team with 150 researchers.

Editor: Emmi Laine, Xiao Yi