Key Takeaways:
Midea Group reported European air conditioner sales surged more than 70% year-on-year, as record heatwaves drove demand across four major markets.
"China, with its complete industrial chain and strong manufacturing competitiveness, offers complementary trade advantages to Europe," Cui Hongjian, a professor at the Academy of Regional and Global Governance at Beijing Foreign Studies University, said.
Midea's Shunde plant in Guangdong is working around the clock to ramp up production of PortaSplit portable air conditioners, with units being rushed to Europe via the China-Europe Railway Express. The company's stock rose 5.66% to HKD84.9 on Monday, with turnover of HKD249 million. China exported $27.2 billion worth of air conditioners in 2025, accounting for nearly 40% of global exports, according to OEC data.
Europe's historically low air-conditioning penetration rate — constrained by strict facade regulations in historic cities and high installation costs — has created a structural demand gap that Chinese manufacturers are filling. The heatwave, which broke June temperature records in Germany, Belgium and the Netherlands, may sustain demand momentum through the peak summer season.
Markets with relatively low air conditioner penetration, including France, Spain, Germany and the UK, all posted year-on-year increases exceeding 70%, according to the head of Midea's overseas air conditioner business. The company's PortaSplit models, designed for homes where wall drilling is prohibited, have become the most sought-after units, with one German netizen creating a website to track stock availability across the European Union.
Beyond Midea, major Chinese home appliance brands including Gree and TCL have also ramped up production of similar portable air conditioners, according to yicai.com. A wider range of Chinese-made cooling products — from fan-equipped sun hats to handheld fans and cooling blankets — have also gained popularity across Europe as temperatures soar.
The sales surge signals that Midea's product localization strategy is capturing market share in a region where traditional split-system adoption has been limited. Investors will watch for the company's interim results later this year for updated segment margins and any capacity expansion plans.
This article is for informational purposes only and does not constitute investment advice.
