"We have invested €250 million this year, will allocate some €150-160 million in 2008, and plan to maintain this pace in the coming two-three years," said Dacia's General Manager, Francois Fourmont.

The Renault-owned company intends to produce some 350,000 cars next year, almost double the level that in 2006. Dacia's production capacity is to reach 400,000 cars as of 2009.

A new Dacia model will be launched in the second half of 2008, which the company will start producing it by the end of next year, according to Fourmont, who provided no further details regarding the name and price of this new car.

Dacia's strategy includes diversifying the model range, rather than replacing existing ones. "We hope Logan will have a life span of more than five-six years, and are now working on improving the product portfolio," according to the Dacia official.

Of Dacia’s entire production, 55 percent is destined for export, to increase to 60-65 percent in 2008, and 70 percent in 2009, said Fourmont.

Dacia's main competitors on the local market are Skoda, Hyundai, and Kia. The company posted €1.55 bln in net sales in 2006, up from €1.2 bln registered in 2005, with estimates in net sales for 2007 and 2008 at €1.8 bln and over €2.5 bln, respectively. Romania has become the largest new car market in Central and Eastern Europe, with sales of some 300,000 units.