Russia's largest car manufacturer AvtoVAZ expects its annual car and car assembly kits output at more than 1 million units by 2007, chairman Vladimir Kadannikov told Prime-Tass at a ceremony marking production of the Lada Kalina.

In 2005, AvtoVAZ plans to produce 702,800 cars and about 240,000 car assembly kits, the report said.

Kadannikov said AvtoVAZ is not only increasing its car output but also improving the quality of its cars. In January-September, the company's car output amounted to revenue of 7.3 billion rubles.

AvtoVAZ plans to fully replace the models currently in production with new ones by 2008-2010, the company reportedly said earlier. AvtoVAZ plans to launch mass production of its first B-class model.

In 2003, the company's exports to CIS countries accounted for 61.5% of its total exports, exports to Europe were 17.1%, while exports to the Middle East made up 15.8%. AvtoVAZ exports to 91 countries.

In 2004 AvtoVAZ plans to produce 684,800 vehicles compared with 699,889 cars in 2003, Prime-Tass said.