Russia’s carmakers are facing mounting problems as falling sales and deteriorating finances put the industry under strain. AvtoVAZ, the country’s largest automaker, has shifted to a four-day workweek amid weak demand caused by expensive car loans and a growing stock of unsold vehicles. The company has cut its production target from 500,000 vehicles to about 300,000, with sales of its flagship Lada models expected to fall by as much as 25% this year. The governor of the Samara region, home to AvtoVAZ’s main plant, has appealed for state support. In his plea, Governor Vyacheslav Fyodorishchev highlighted AvtoVAZ’s role as a major employer, with 40,000 workers at the plant and another 15,000 in affiliated industries, but cautioned that workloads are on the decline. Motor vehicle and trailer manufacturing was among the sectors hit hardest in the first eight months of 2025, with output down 19.9% year on year, according to the Economic Development Ministry. That follows an 18.2% increase in 2024, a recovery year for the industry.
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