Panasonic and Chinese smartphone company Xiaomi have entered a partnership to produce and develop air conditioners, hoping to capture part of China’s market, the world’s largest, reports Nikkei Asia. Panasonic plans to gradually transfer some production of home air conditioners for the Japanese market from Guangzhou, China, to Shiga prefecture, Japan, this fiscal year. It will use the newly freed up capacity in its Guangzhou plant to produce Xiaomi brand air conditioners on an original equipment manufacturer basis.
Under their strategic cooperation agreement announced recently, the companies will also join forces in technology development. The two have collaborated on products like air conditioners with purifying functions, but plan other features such as internet connectivity.
China’s air conditioner market is dominated by home appliance makers such as Midea Group and Gree Electric. Although a latecomer, Xiaomi has set itself apart by developing air conditioners with temperature settings that can be adjusted using smartphones and smart speakers, and is hoping for further growth by developing new technology with Panasonic.
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