Russia’s largest car manufacturer AvtoVAZ plans to assemble 120,000 vehicles in Ukraine a year in the next two to three years, up from 72,000 vehicles in 2004, Oleg Svinarchuk, chairman of the board of directors of Ukrainian auto producer Bogdan, told Prime-Tass.

AvtoVAZ expects its annual trade with Ukrainian companies to rise to $US500 million, Svinarchuk reportedly said.

The report noted AvtoVAZ cars are assembled by the Lutsk, Kremenchug and Zaporozhye car plants in Ukraine – Bogdan Industrial Investments Holding owns the Lutsk plant.

New car sales in Ukraine were 211,900 units in 2004, up 37% on the year. AvtoVAZ’s share was more than 30%, Prime-Tass added.