Russia to boost car output 1.5 fold by 2010?

Car output in Russia may go up 1.5 fold, while car sales may double by 2010, Vadim Shvetsov, General Director of Severstal-Avto company, forecasted at a conference, Russia's Motor Sector, on Tuesday.

Car output may reach 2,513,000 in 2010 compared to 1,719,000 in 2004, according to Mr. Shvetsov.

Car sales are forecast to make $31,742,000,000, which is nearly twice as much as $15,696,000,000 in 2004, said Mr. Shvetsov.

The share of Russia's long-established car manufacturers will go gradually down, he noted.

Russian manufacturers will account for more than $5 billion of a total of $15 billion of sales in 2004, whereas in 2010, their share in over $31 billion of aggregate sales will be some $8 billion.

According to Mr. Shvetsov, cars will cost an average of $9,000 in 2010 against $5,000 in 2003.

Mr. Shvetsov noted the improvement of the macroeconomic situation, growing incomes, better consumer crediting conditions and a lighter tax burden among the positive aspects of the Russia's motor sector development.

Mr Shvetsov cited lenient technical oversight rules, which do not offer stimuli for modernising car parks, and the lack of tariff import replacing stimuli as negative factors.