Still in loss, Qoros will launch a five-year alternative energy strategy

Gasgoo.com (Shanghai Jan 20th)--Qoros finally announced a future five-year alternative energy strategy on 18th, January. According to the plan, Qoros will launch the first generation of Plug-in hybrid electric vehicles (PHEV) and Blade Electric Vehicles (BEV) in 2017, and the second generation of PHEV and BEV based on GEV platform will be launched in 2020.

Latecomer’s five-year plan on alternative energy

Qoros Auto’s Chairman Anning Chen told reporters that, “In my view, the two hotspots in the market are alternative energy and SUVs.” In the past 2015, alternative energy vehicles’sales have a 4 time increase with the annual sales volume reaching 330,000units, higher than the market’s expectancy. Professionals predict that the sales will reach 700,000 in 2016. In the New Year’s beginning, almost every self-owned brand is busy releasing the alternative energy product and sales volume plan.

One insider in Qoros told reporters that, “We intend to enter the alternative energy market from the beginning of Israel Corporation Ltd. and Chery’s collaboration.” In reporters’ view, Qoros’s strategy of betting on electrification and intelligentization is based on national polices and shareholders’ judge on future trend.

Sun Xiaodong, Qoros’s Vice Executive President said that, although the entering time is a little late, Qoros must take the way. Qoros has some resources and technical advantages, with the project team composed of technical experts and senior executives in the field, and 70% staff of the R&D team has developing experience.

Multiple bottlenecks to be solved

Despite of the technical and resources advantages, Qoros still faces great pressure. Firstly, the launching time of Qoros’s alternative energy vehicles will be at least 2017. It’s estimated at that time the market is tending to saturated. Besides, the subsidiary will drop by 20% in 2017-2018, increasing companies’ cost pressure. On the other hand, the project needs great funds, but Qoros is now in loss. In the long term, Qoros has urgent need to solve a series of problems including sales volume and channels. All the problems add a great burden on the newly listing model Qoros5.