Business / Motoring

Head of Qoros says it will stand on its own in 3 years

By Li Fusheng (China Daily) Updated: 2016-04-18 11:00

Chinese automaker Qoros said its financial performance is turning better although it remains in the red following rumors that its losses last year grew to 2.5 billion yuan ($386.8 million) from 2.2 billion yuan in 2014.

"We will be able to live on our sales revenue in two or three years. That means we will not have to rely on parent companies' support for daily operation. If things are good, we might make it this year," Qoros President Chen Anning said at a news conference earlier this month in Beijing.

His remarks came after online reports surfaced showing Qoros' annual losses in the financial statement of Kenon Holdings, who set up the automaker with China's Chery in 2007.

"I don't know what rules were used to compile their statement but I can tell you that our losses in 2015 was 10 percent less than in 2014," Chen said.

He admitted that Qoros has yet to turn a profit since its establishment but that the losses were expected. He said 60 percent of the losses came from initial investments, market research and development costs.

"Based on our financial scale, we can live on our sales revenue when our sales reach tens of thousands of units a year."

Its 2015 sales reached 14,000 units, a 170-percent surge from the previous year.

Earlier this year Chen set a goal of selling 30,000 units to 50,000 units in 2016. He said 2,500 cars were sold in March, with sales in April climbing higher due to the launch of the Qoros 5 SUV in several Chinese cities.

SUVs have been the fastest growing segment in the Chinese market. A total of 1.96 millions SUVs were sold in the first quarter of 2016, a 51.46-percent surge year-on-year.

Chen said more than 3,000 units of Qoros 5 have been sold since March, which is a strong rival of SUVs priced at above 150,000 yuan from international brands, including Ford, Toyota, GM and Hyundai.

"Qoros is a high-end Chinese brand and we can compete with international brands in terms of quality, performance and value. I don't know what other Chinese brands only see international brands as their competitors."

Its first model, the Qoros 3 compact car, was the first China-built model to receive a five-star rating under EuroNCAP safety standards.

Chen said Qoros will join hands with European racecar maker Koenigsegg at the Beijing auto show in late April to improve its powertrain.

"Qoros did not have the intention of becoming a Chinese Volkswagen or GM from the very beginning. Instead, its aim is to develop into an automaker with an innovative spirit, an automaker that stands somewhere between traditional firms and Apple Inc."

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