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China Daily Website

Qoros 3 price close to material cost

Updated: 2013-12-11 16:37
( cnautonews.com)

A Qoros staffmember said that Qoros has seen a loss of more than 2 billion yuan in the past three years, exclusive the PPE investment. Qoros has spent 500 million yuan in promoting Qoros 3, far more than the usual marketing cost for one product.

The Qoros 3 is priced among 119,900 to 167,900 yuan ($19,750 to 27,650). The Qoros staffmember said the Qoros 3 price is close to its bill of material cost.

From 2012 finance report of Qoros, operation cost is 673 million yuan in 2012, which include 343 million yuan's new car research and development. Another half is management fee. Because Qoros has not launched market in 2012, it barely has income. Net loss of Qoros is 635 million yuan in 2012 based on finance report. However net loss of 2011 is as high as 700 million yuan. It spends 80 percent money on R&D, while only 20 percent on management cost.

A Qoros senior manager told reporter at the first Qoros Auto Technology Day in Sept this year that marketing cost of Qoros first product will exceed its opponents. According to Qoros plan, its Qoros 3 marketing fee will exceed 500 million yuan. The company says that Qoros 3 marketing fee will exceed Beijing Hyundai Sonata (450 million yuan), Skoda Octavia (410 million yuan) and Roewe 350 (400 million yuan).

Qoros 3 production capacity of next year is only 10 thousand. It means that every single car of Qoros will take 50 thousand yuan on marketing cost.