Kazakh car assembly plant Asia Auto plans to assemble 10,000 cars with parts produced by Russia's largest car manufacturer AvtoVAZ in 2006, ITAR-TASS reported Thursday citing Anatoly Balushkin, chairman of the board of directors of Kazakhstan's Bipek Auto.

Asia Auto is a subsidiary of Bipek Auto.

"We have had talks with AvtoVAZ on the issue and we understand each other," he said.

Asia Auto plans to assemble Lada-21214 cars, Lada-Kalina cars and autos of the so called "10th generation" of Ladas (Lada-110, Lada-111 and Lada-112), Balushkin said. It was not clear which cars of the 10th generation of Ladas the plant planned to assemble.

Asia Auto currently produces about 3,000 AvtoVAZ Lada Niva cars annually, Balushkin said, adding that the plant's annual production capacity is 45,000 vehicles.

Asia Auto plans to assemble 15,000-16,000 cars in 2005, including 5,000 Skoda Octavia cars, Balushkin said. He added that Asia Auto planned to launch mass production of Octavias in August.

Asia Auto is based in the city of Ust-Kamenogorsk.