AvtoVAZ may receive exclusive tax benefits from the state to support it amid a decline in demand for Lada cars. This was announced by the Governor of the Samara Region, Vyacheslav Fedorishchev.
According to Fedorishchev, 40,000 people work at AvtoVAZ, and another 15,000 work in cooperation within the Samara Region. He attributes the decrease in the plant's workload to the decision of the Central Bank of the Russian Federation on the key rate.
The Governor clarified that he had discussed support for the company with federal ministers of labor, industry, and finance. The assistance will be combined: federal with regional co-financing, approximately 12%.
In conjunction with Rostec, an expansion of the special investment contract (SPIC) is being developed to provide AvtoVAZ with tax benefits. Fedorishchev emphasized that direct cash transfers from the region are not possible, so support will be implemented through benefits to preserve the industrial sector and stimulate the development of the automotive industry.
Earlier, the company planned to switch to a shortened four-day work week from September 29 due to pressure on the car market and overflowing warehouses. According to the Ministry of Industry and Trade, the market for new passenger and light commercial vehicles in the Russian Federation for January–July 2025 fell by 23.4% to 704.7 thousand units. Lada sales for this period decreased by 24.4% to 183.7 thousand cars, according to Avtostat.
At SPIEF-2025, the head of AvtoVAZ, Maxim Sokolov, announced that Lada sales are expected to decrease by 20–25% in 2025. The production plan will be adjusted proportionally.
