AvtoKrAZ to boost output to 5.5 ths vehicles by 2015

AvtoKrAZ (UX: KRAZ UK) is targeting ramping up its annual production over the next five years to 5.5 ths vehicles by 2015, the company reported yesterday in a filing with the State Securities and Exchange Commission. AvtoKrAZ said it plans to make 2.5 ths vehicles in 2010, 3.3 ths in 2011, 4.1 ths in 2012, 4.8 ths in 2013 and 5.5 ths in 2014. Yegor Samusenko: Though the local auto market is expected to return to its pre-crisis level only in 2014, AvtoKrAZ is targeting pre-crisis output already in 2012. We see the company’s plans as realistic given that contrary to other local auto manufacturers, 2/3 of its output is exported. Demand for AvtoKrAZ heavy duty trucks abroad comes mainly from the mining sector, which is increasing CapEx in line with the recovery in commodity prices.