RIA Novosti cited Mr Yevgeny Shmelyov AvtoVAZ Vice President for Technical Development as saying that Russia largest car maker AvtoVAZ plans to produce its first 100 ElLada electric cars in 2012.

He said that "Production of 100 ElLada electric cars next year is a reality."

Mr Shmelyov added that the price of the new eco-friendly cars, built on the basis of the Lada Kalina will be twice the price of a petrol-engine Kalina which costs from RUB 280,000 to RUB 390,000 depending on specification and engine capacity. The car maker has produced only two ElLada cars so far each costing over RUB 1 million.

He said that "The Stavropol territory is the most promising in terms of sales. We are also discussing supplies with Moscow, where Mayor Sobyanin recently saw this electric car at the RusNano exhibition."

Mr Georgy Yefremov deputy head of the Stavropol territory, said the region is ready to create preferential terms for consumers who buy electric cars. He said that "We are ready to subsidise 10% of the price of each car for three years."

He added that the first 100 cars will appear in Kislovodsk and Mineralnye Vody International Airport. He also said "We will set up approximately 10 battery chargers at the airport."

Investcafe analyst Mr Kirill Markin says AvtoVAZ' electric car program is primarily aimed at demonstrating the solvency of the Russian car industry and will depend completely on Russian government backing.

He said that "If the Russian government will subsidize purchase of such electric cars, they will get major interest."

(Sourced from RIA Novosti)