Russia’s biggest carmaker Avtovaz plans to control up to 40% of the Russian car parts market, now estimated to be worth than $US 4 billion. Avtovaz's President Boris Alyoshin says he is not excluding the possibility of further expansion into other c

Boris Alyoshin: Currently the question about the development of our company has changed. The Russian market is growing dramatically – almost 35% annually. In these conditions, it is very important to be able to supply customers with products that are in demand. The most recent task for us is to develop a business plan for the period from 2009 to 2012. In this time, we need to reach a capacity of 1.2 million cars a year.

RT: What is the expansion strategy of Avtovaz?

B.A.: We will continue working with our new models, such as the Kalina. We are dramatically expanding the production of this type of car, and aim to reach 180,000 Kalina cars a year. Avtovaz will have to support these plans with the development of new technology. First, there is the construction of a new plant with capacity of 450,000 units  annually. With this, we will be able to produce more then a million cars a year and eventually take 25% of the market. One planned purchase,  car-maker IzhAvto is not in its best financial state. We plan to produce  three brands of cars: Lada, Renault and Nissan at the IzhAvto plant. This  will bring us closer to >the Renault-Nissan alliance. We do not exclude  further purchases. Asia Avto is a very interesting asset for us and we are  working on that.

RT: What advantages does Avtovaz have on the market?

B.A.: We are strong in our distribution. We have spent a lot of time improving our transport links. Now, we have the possibility to deliver our cars throughout the country, and this is where I think we have a competitive advantage.