The Ministry of Industry and Trade allowed a decrease in production and sales of AVTOVAZ by 25%

AvtoVAZ's production and sales may decrease by 20-25% by the end of 2026 due to the suspension of state support for demand for cars - the preferential car loan program. This was announced on October 22 by Dmitry Klementyev, Deputy Director of the Automotive Industry and Railway Engineering Department at the Ministry of Industry and Trade, at a meeting in the Federation Council.

In September, the Ministry of Industry and Trade reported that by the end of the third quarter, the budget limits provided for 2026 for preferential car loans and leasing programs had been exhausted. According to the agency, in nine months preferential car loans helped to sell 123 thousand cars in Russia, and preferential leasing programs — 54.8 thousand units of vehicles.

The current budget assumes the allocation of 20 billion rubles to support preferential car loans and 30 billion rubles for preferential leasing, while in the draft federal budget for 2027-2029, financing of preferential car loan programs is proposed to be reduced, the publication notes. Thus, a total of 14 billion rubles are provided for 2027 and 2028, 7 billion rubles each annually.

In January-September 2026, sales of new passenger cars in Russia increased by 8.8%, to 968 thousand units. During the same period, AvtoVAZ sold 244.6 thousand Lada cars, which is 0.4% more than a year earlier.

Machine plan: the government has updated the strategies for the development of the automotive industry

Domestic automakers will be forced to unite

Earlier in the day, it was reported that the total volume of investments in the Russian automotive industry since 2022 amounted to about 300 billion rubles. This was stated by Grigory Tsyba, Director of the Department of Automotive Industry and Railway Engineering at the Ministry of Industry and Trade.