Russia’s largest car manufacturer AvtoVAZ plans to start production of newer B and C class cars in 2009, Vladimir Artyakov, chairman of AvtoVAZ’ board of directors told a parliament meeting dedicated to the legislative support of the car industry.
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The price of the models will not exceed $US10,000, Artyakov said, according to Prime-Tass.
In 2011 AvtoVAZ expects to start producing a D class car and a sports utility vehicle, Artyakov said. The price of these models will be in the range of $10,000 to $15,000, he added.
Artyakov called on the government to provide support to the auto industry. Specifically, he proposed financing the development of the Euro-5 standard engine with money from the government’s Investment Fund.
Artyakov also called for using funds from the federal budget to partially cover interest payments on leasing transactions and loans taken out by car producers for investments in modernisation.
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By GlobalDataAvtoVAZ produced 960,000 cars in 2005.
By 2020 AvtoVAZ expects to increase its output to 1.3m cars, Artyakov reiterated.
AvtoVAZ plans to increase output of its new Lada Kalina model, which the company is already producing, to 300,000 cars, Artyakov said, without giving a timeline. It plans to gradually stop production of the Lada-110 model, he added.
AvtoVAZ currently produces about 70% of Russian domestic passenger cars and accounts for 40%-42% of total passenger cars sold in the country.
Since December 2005, AvtoVAZ has been indirectly controlled by Russian government-owned military export company Rosoboronexport. Before Rosoboronexport gained control of AvtoVAZ, the carmaker owned itself through several subsidiaries.
