John Booth sounds downbeat despite Virgin expecting to take a major step forward in Turkey early next month.
After the team's new car only narrowly staved off the struggling HRTs recently, media reports said an upgrade package for Istanbul includes a higher nose, new floor, Red Bull-like exhaust, modified rear suspension and new wings.
Germany's Speed Week is calling the upgraded version a 'B' model of the MVR-02, but team boss Booth is quoted as worrying about the development of the team in its second season.
"We have stagnated," the German-language report quotes the Briton as saying.
"The new developments for the Turkish Grand Prix will eliminate many of our problems, but we will only then be where we wanted to be in Australia," added Booth.