Qoros sales will be promoted by price reduction, brand reposition?

Gasgoo.com (Shanghai August 24) - In a recent speech addressed by Phil Murtaugh, CEO of Qoros Automotive, a Chinese automotive manufacturing company established as a joint venture between CheryandIsrael Corporationin December 2007, he stated that is marque with an independent spirit quoting The Declaration of Independence of United States. The CEO is trying to announce the brand positioning of Qoros.

Qoros’ production is of good quality but low sales. So the company intends to lower the selling price of its products and make a clear brand image to Chinese consumers.

It has gained recognition by Chinese market in high quality and comfortable driving experience. The next step for the joint-venture is to spread the information to more customers in China. As a brand new vehicle brand, Qoros has to find a reason for consumers to learn more about the company and purchase its product.

In the coming future, the company plans to launch a middle- and large- sized SUV with seven doors, a middle- and large- sized car and a small SUV to complete its production line. Price has been reduced a lot in the coming models, for example one model with the minimum distribution will be sold at 108,000 yuan.

The company reports July sales of 1,200 units and the accumulative sales of the first seven months of 6,944 units, while the annual sales target for the company is 35,000 units. It is almost impossible for the joint-venture to achieve the left 28,000 units in the coming five months.

Qoros sets its annual sales target in the next five years in 300,000 units to 400,000 units, the average annual sales of Chinese domestic mainstream automakers with ten year development history. But, the new generation of vehicles won’t be launched until in two years. Thus the existing three models will hold all the responsibility for the huge sales expansion.