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Feann Torr26 Aug 2026
NEWS

Dreame cars axed before planned Australian launch

The Dreame car is dead: Chinese business abandons automotive business, killing off plans to launch in Australia in 2027

The News

Dreame has abandoned its car business entirely, meaning the Chinese tech giant’s planned 2027 Australian launch will now never happen.

The vacuum cleaner maker has officially walked away from cars just over a year after entering the automotive sector, shelving plans that once promised solid-state battery supercars and SUVs aimed at buyers considering the Tesla Model Y and BYD Sealion 7.

The Key Details

  • Dreame has officially abandoned its car business
  • Planned 2027 Australian launch now cancelled
  • Automotive division once employed close to 1000 people
  • The ‘Rocket Car’ claimed 0-100km/h in 0.9 seconds
  • Dreame will now focus on four core business lines

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The Finer Details

The retreat comes as Dreame CEO Yu Hao, known for an entrepreneurial business style, pivots the company back to its core strengths.

Dreame has scrapped most of its incubator or startup projects and will now focus exclusively on four business lines: vacuum cleaning, robotic lawnmowers, two-wheeled electric vehicles, and its ‘Magic Atom’ robots.

Despite walking away from cars, the company is still pursuing a public listing on capital markets.

The collapse of its auto arm comes just a year after Dreame’s official entry into the car market in August 2025.

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The brand made global headlines in early 2026, debuting a supercar at CES in January before unveiling the ‘Nebula Next 01 Jet Edition’ – dubbed the ‘Rocket Car’ – in San Francisco in April.

At its peak, the automotive division employed close to 1000 people. Months of layoffs have seen staff numbers whittled away and the automotive business is now winding down operations and settling supplier debts.

The ‘Rocket Car’ had been marketed as a breakthrough in aerospace-grade civilian transport, with claims of a 0-100km/h sprint in just 0.9 seconds, a solid-state battery exceeding 450Wh/kg energy density, and a range beyond 550km.

It is a sharp reversal from the vision Dreame was pitching to Australian media only months ago.

Nebula Next 01 Jet Edition (also known as ‘Rocket Car')

The brand had positioned its EV push as the next step in building a Xiaomi-style ecosystem linking phones, appliances and vehicles.

“Our strategy remains clear,” a Dreame spokesperson said at the time, “to develop an intelligent technology ecosystem of Dreame products that solve everyday problems both inside and outside the home.”

The company had also flagged Australia and New Zealand as its first export markets outside China, calling the region ‘incredibly important’.

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But that ambition has run into the reality of an increasingly brutal Chinese EV export race.

With dozens of manufacturers – from BYD to GWM to Zeekr and many smaller challenger brands – all chasing the same overseas buyers, it is an extremely crowded market, and getting a genuine foothold has proven far harder than the marketing suggested.

The Road Ahead

For now, Dreame’s cars will not be part of its business, much as Apple and Dyson ditched their automotive plans – in Australia or anywhere else.

The company’s planned 2027 Australian launch is effectively dead, with Dreame instead returning its focus to vacuum cleaning, robotic lawnmowers, two-wheeled electric vehicles and its ‘Magic Atom’ robots. 

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