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As new energy models gradually become strategic plans for car companies to transform in order to achieve sales target growth, more and more car companies transform the production capacity of their fuel models or directly expand new energy plants. A few days ago, Qoros Motor, a subsidiary of Baoneng Group, will also carry out such a plan and expand its production capacity.

According to internal documents exposed by the media online car market, Guanzhi Automobile Co., Ltd. plans to build an additional 100000 / year and 120000 / year factories in Kunshan, Jiangsu Province and Xi'an, Shaanxi Province, respectively. The future models produced by the two factories will be their new energy models, of which the Kunshan base will be put into production codenamed C26E pure electric SUV and C21E pure electric cars, while there is no news of the models put into production at the Xi'an plant.

(photo Source: online car Market)

Although Qoros has previously released a number of all-electric models, including the MILE 1, Model K-EV and the Milestone launched at this year's auto show, these models are only at the conceptual stage and cannot be mass-produced.

With the official commissioning of the two Qoros plants, its annual production capacity will be more than 500000 vehicles a year, but it is worth noting that it currently sells less than 10, 000 vehicles a year.

Qoros, a high-end brand owned by Chery, did not develop smoothly during Chery's control of Qoros, with depressed sales, sustained losses and members of the former management team leaving one after another.

Until December 2017, Guanzhi officially announced that Baoneng Group's strategic investment Guanzhi Automobile has become a major shareholder, forming a tripartite shareholder holding of Baoneng, Chery Automobile and Quantum. Guanzhi also officially changed hands with Baoneng, which took a 51 per cent stake in Guanzhi for 6.63 billion yuan.

However, it is also difficult to be optimistic after Baoneng Group entered the auto industry. After Baoneng Group acquired Qoros, Qoros sales increased from 15000 in 2017 to 63000 in 2018, an increase of 320% over the same period last year, but most of the new cars were "produced and sold" through Baoneng's affiliated companies. there are very few in the actual consumer market. Quan Chi's cumulative sales fell 64 per cent to 23000 in 2019, with public data showing that it sold 6543 vehicles from January to September, down 55 per cent from a year earlier, with an average monthly sales of only about 700s. This is a far cry from its projected production capacity plan.

In September, Quan Chi also brought a new model, Guanzhi 7, with a price range of 10.98 yuan to 159800 yuan, and is equipped with a BMW-licensed engine, including 1.6T and 1.8T power output. Also help brands to achieve a certain sales support, but the market response is still small. Some analysts said that due to the serious lack of sales channels of Qoros, it is also the main reason for the poor sales of Guanzhi 7.

However, what is more is that Guanzhi, as a domestic independent high-end brand, did not establish its obvious advantage in the early stage of listing in 2007, and has almost lost its sense of existence in the current market with more encouraging market competition and price increases. In this regard, with the launch and expansion of more new energy models, if Quan Zhi Automobile wants to achieve a greater breakthrough, it should re-seek market positioning, product positioning and revive the hope of brand development.

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