Car Output Fell 59.4% on the Year in 2009 to 596.9 Thousand Units

Moscow, 26 January 2010

PRESS RELEASE

Vehicle production in the Russian automotive industry resulted in 2009 with an unexampled fall: total output amounted to 723.3 thousand vehicles in 2009 or 60% less than the 2008 production number (1792.6 thousand units).

Passenger cars

Car output fell 59.4% on the year in 2009 to 596.9 thousand units..

Output of domestic models was down 63.9% (316.9 thousand units).

Output of foreign models was down 52.7% in general (280.0 thousand units) and down 46.8% at facilities operating under “industrial assembly” scheme in particular (192.2 thousand units).

ASM Holding forecasts Russia’s car production in 2010 to be 800 thousand units, up 34.0% on the year, including:

-Domestic models 450 thousand units (+42.0%)

-Foreign models 350 thousand units (+25.0%)

-Of them industrial assembly 250 thousand units (+30.0%).

Car sales forecast for 2010 is estimated by ASM Holding as 1500 thousand units at whole (vs. 1404.8 thousand units in 2009), up 6.8%.

-Domestic car sales to be 430 thousand units (vs. 392.2 thousand units in 2009), up 9.6%

-Foreign car sales to be 1070 thousand units (vs. 1012.6 thousand units in 2009), up 5.7%

-Of them locally produced foreign car sales to be 365 thousand units (vs. 362.7 thousand units in 2009), up 0.6%

-Imported new models 690 thousand units (vs. 634.4 thousand units in 2009), up 8.8%

-Imported used models 15 thousand units (vs. 13.3 thousand units in 2009), up 12.8%.

Note:

-LCVs are not included in production and sales of passenger cars.

-Imported models do not include cars imported by natural persons.

For info:

As per provisional customs data, natural persons imported 74.1 thousand cars in 2009 vs. 378.8 thousand cars in 2008.

Trucks

As compared to 2008, a notable fall of truck production took place in 2009.

-Total output of trucks was 257.14 thousand units in 2008 and 91.40 thousand units in 2009 (-64.5%)

-Of them output of domestic models was 238.83 thousand units in 2008 and 83.99 thousand units in 2009 (-64.8%)

-Output of foreign models was 18.31 thousand units in 2008 and 7.41 thousand units in 2009 (-59.5%).

Truck production forecast for 2010 is 100 thousand units (vs. 91.4 thousand units in 2009), up 9.4%, including:

-Domestic models 90 thousand units (+7.2%)

-Foreign models 10 thousand units (+35.1%).

Truck sales in Russia in 2010 are expected by ASM Holding to be 130 thousand units at whole (vs. 119.6 thousand units in 2009), up 8.7%.

-Domestic truck sales to be 80 thousand units (vs. 75.8 thousand units in 2009), up 5.6%

-Foreign-branded truck sales to be 50 thousand units (vs. 43.8 thousand units in 2009), up 14.2%

-Of them locally produced foreign truck sales to be 10 thousand units (vs. 7.35 thousand units in 2009), up 36%

-Imported new models 24 thousand units (vs. 20.3 thousand units in 2009), up 18.5%

-Imported used models to remain on 2009 level (16 thousand units).

Buses

Decrease of bus production started as early as in mid-2008, and their output fell 46.6% on the year, or 1.9 times, already in 2009 (35.80 thousand units vs. 67.08 thousand units in 2008). Minibus output fell at the same time 1.7 times. Production of domestic buses fell more than twice, while output of foreign models rose by 4.6%.

Bus production forecast for 2010 is 39 thousand units (+10.5%), where domestic models will gain growth 10.5% and foreign models will add 10.2%.

Bus sales in 2010 are estimated as 38.0 thousand units, including 8.0 thousand foreign models, of which 4.8 thousand foreign models of Russian assembly.

The above stated forecast of the Russian automotive market in 2010 suggests successful restructuring of AVTOVAZ and continuing governmental support of domestic auto industry.