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Strategic Corporate Profile of Qoros Global Operations : Connecting Smart Living and Mobility through Dedicated Telematics Business Model

  • November 2014
  • 47 pages
  • Frost & Sullivan
Report ID: 2470303


Table of Contents

Key Findings

•Qoros Auto is headquartered in Changzhou, China. Its primary market focus is China followed by Europe, Middle East, and Latin America.
oQoros Auto currently has two models: the 3-sedan and 3-hatchback, in its product portfolio.
oPlans for future models include the Hybrid HQ3 Cross and SUV XQ3.
•Qoros Auto was formed as a joint venture between Chery Auto and Israeli Corp. in 2007. The company functions independent of the two major stakeholders, and sets it own short-term goals and direction. Chery Auto appointed Volker Steinwascher as the Vice Chairman and Gert Volker Hildebrand as the Head of Design.
•The key management from Qoros Auto are from established OEMs.
oStefano Villanti is the Head of Marketing, Sales and Product Strategy. In his 6-year tenure at McKinsey, he supported major automotive OEMs in Europe and China. His key focus was operational strategy, customer-driven product development, and market entry strategy.
oKlaus Shmidt, the Executive Director of Vehicle Engineering and Peter Matkin, Director of Program Management, along with Gert Volker Hildebrand, form the core engineering team. Klaus Shmidt was with BMW for x years as the Chief Engineer of Vehicle Performance and Chassis, while Peter Matkin was the Chief Engineer of Vehicle Integration in his 15-year tenure at Jaguar and Land Rover.
•Qoros Auto R&D including basic research, design through validation and testing of its products, and production is spread over 9 countries and not restricted to China. Product development is outsourced to key suppliers.
oBasic and advanced research is based out of its Shanghai center in China.
oDesign and engineering of the products are based out of Graz and Munich centers in Germany respectively.
oProduct development is outsourced to suppliers such as TRW (electronic stability control & anti-lock braking system) and Microsoft (Windows azure platform for QorosQloud), which reduces the time to introduce products into the market.
•Qoros Auto has built its stronghold in China. The company currently has x dealerships and it is expected to expand to 60 more dealerships along the eastern coast of China by 2014. The focus on China’s eastern coast (also known as golden coast) capitalizes on the rapid development of metropolitan areas in this region.
•By 2020, China is expected to continue to be its biggest market, accounting for about 85% of global sales.
•Its strategy for Europe is to enter Eastern Europe, followed by expanding into the Scandinavian or Nordic countries. Qoros Auto aims to gain traction in the smaller markets before tackling the more established Western European markets.
•Moving away from the stereotypical image of Chinese manufacturers, Qoros Auto is working toward establishing itself as a brand associated with superior build quality. Its quality, combined with the premium luxury experience, is on par with other luxury OEMs.
•Qoros Auto has designed its products keeping in mind the target market—the socially connected customers; primarily the Gen X and Y demographic.
oQoros Auto’s portfolio currently offers gasoline powertrains and it is expected to introduce hybrid technology options by 2015. The Crossover, next in the model line-up, is expected to have a hybrid powertrain.
oHMI is Qoros Auto’s unique selling point; Qoros Auto offers cutting edge technology, the QorosQloud, a cloud-based connectivity platform. It won the Telematics award for the BRIC region at the 2014 Detroit Telematics industry forum.
oIn terms of safety ratings of Qoros Auto models, Euro NCAP’s safety ratings rank the Qoros 3 sedan as the safest car in Europe along with the Volvo V40.
oThe cars were designed keeping in mind the sartorial image of the younger generation. The Qoros 3 hatch won the Red Dot award in 2013 for its car design.
•Qoros Auto has one production facility in Changzhou in China with an installed capacity to produce xunits annually.
•Production can be expanded to x units with expected further investments.
•A second production facility is expected to be set up in Europe in future, to cater to local demand.

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