Chinese-Israeli Venture Launches Premium Car

Published on Author croland

Chery is China’s ninth largest automaker by sales according to the China Association of Automobile Manufacturers, a semiofficial auto-industry group. Within a crowded market where margins are relatively thin, China’s car sales rose 4.3% in 2012, below 8% industrial officials were expecting.

In Hessler’s Country Driving, we all read about Chery cars, but what is the company up to today? 

Guo Qian, Chief Executive of Qoros (R) poses with Vice-Chairman Volker Steinwascher (C) and Designer Gert Volker Hildebrand during the presentation of the new Qoros 3 sedan during the first media day of the 83rd Geneva Car Show at the Palexpo Arena.


Founded in 2007 under the name Chery Quantum Automotive Corporation, the Company’s name became Qoros in 2011. The joint venture between Chinese and Israeli carmakers made its Geneva Motor Show debut with the unveiling of the 3 Sedan and two concept cars.

Its 3 Sedan will be manufactured in a new assembly plant in Changshu, China and yearly output could initially reach 150,000 cars. The car, priced below 20,000 euros ($26,000), will be sold in China and the European market. 

Daniel Backman, a former Volvo Cars executive who is Qoros’ director product strategy said, “For the Chinese, Europe means everything that is good [when it comes to cars]. If people outside China buy the car then the Chinese will consider it.” But what are Chinese drivers really looking for in a car?

3 Responses to Chinese-Israeli Venture Launches Premium Car

  1. Interesting in that a “premium” car would normally mean targetting a price bracket rather more than €20,000. Since Chery has a different cost base and no need to hit joint venture profit targets, maybe it can deliver an upscale product at a very competitive prices.

    Image is another issue. In the China context, as you know from Country Driving, premium can mean an Audi or at least a Buick.

    At the top end of the scale (super premium), it’s not clear that ventures reflect rational (or at least brands-stand-alone) business models – see Marchionne’s Big Gamble in the most recent Automotive News. Chery is not talking about that.

  2. Qoros may not be considered a “premium” car next to an Audi but clearly the Company is trying to position the 3 Sedan as a “premium” car with a lower price tag. Here is an interesting article talking about the premium car market in China which is expected to leapfrog the US to the #1 ranking by 2016. Additionally, McKinsey forecasts that by 2020 there will be 23 million affluent urban households on the mainland with annual disposable incomes of more than 200,000 yuan.