(Yicai Global) March 10 -- Chinese home appliance suppliers, including Midea Group and Gree Electric Appliances, are seeking new opportunities in electric vehicles amid rising raw material costs and sluggish sales.

China could sell more than 10 million NEVs by 2025, Fu Yongjun, president of Midea Group's electromechanical arm, said to Yicai Global. If Midea fails to become a major supplier in the NEV sector now, it may not have another chance, Fu added.

Rivals are eyeing the booming sector too. Zhuhai-based Gree acquired a controlling stake in a NEV battery company last August. Moreover, Hisense Home Appliances Group gained 75 percent of Japanese automotive equipment firm Sanden's voting rights a year ago with plans to jointly develop thermal management solutions for electric vehicles. 

Home appliance makers can tap into the electric vehicle industry chain by using their advantages in mass manufacturing, said Wen Jianping, chairman of All View Cloud Data Technology. However, the NEV sector is more demanding in terms of core technologies and talents than their native field so they should think carefully, Wen added. 

One way to gain experience is investing and partnering with others. Midea is in talks with automakers such as Volkswagen about collaboration, said Fu. "We would discuss the possibility of entering the market via mergers and acquisitions if there is a target company that is to some degree recognized in the sector and boasts some experience," said the vice president of Guangdong province-based Midea.

NEV makers can also learn from these fresh suppliers. NEVs' thermal management issues are quite obvious, including mileage during wintertime, Chen Jintao, general manager of Anhui province-based Weiling Auto Parts, said to Yicai Global. Weiling is an affiliate of Midea

"Mileage is halved once the air-conditioning is turned on," said Chen. "We need to help our customers resolve all these problems." Weiling will operate Midea's new CNY11 billion (USD1.7 billion) electric vehicle parts facility that is currently being built in Anhui.

Editors: Tang Shihua, Emmi Laine, Xiao Yi