icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
4 Jul, 2008 03:02

Russian largest carmaker expands into car parts

Russia’s major automaker Avtovaz is expanding further, into the car parts industry. Its car-making division, together with Russian Technologies Corporation and investment bank Troika Dialog, plan to create an auto parts venture. The holding will be indepe

The overall market has almost doubled over the past decade, and almost half of those are the Lada family. It’s an internationally known Avtovaz brand produced at its Togliatti car plant.

The carmaker sold a record number of cars in 2007 and it’s targeting new markets.

Avtovaz plans to double its output, with the aim of reaching the production level of 1.2 million cars a year.

“The Russian market is growing dramatically – almost 35 per cent annually. In these conditions, it is very important to be able to supply customers with the products that are in demand,” said Boris Alyoshin, Avtovaz President.

To achieve that, its brands must evolve. One strategy is to produce budget cars priced up to $US 8,000.

But Avtovaz is also addressing the shortage of car components.

“We plan to launch an independent holding together with Avtovaz, and several other companies like Kamaz are also interested. This venture will produce car components and may later float on the stock market,” said Sergey Chemezov, head of Russian Technologies Corporation.