AvtoVAZ is preparing for a quarter-on-quarter decline in sales of budget funds subsidized by discounts on car loans that ran out in September. AvtoVAZ warned of a possible drop in production and sales of 20-25% by the end of the year. The preferential loan program supported 123,000 cars, most of which were Ladas. Now the largest Russian carmaker is left without the main driver of demand. End of preferential loans The Ministry of Industry and Trade has officially confirmed that preferential car loan and leasing programs have met their goals and have been frozen until the new budget cycle. A commitment of 20 billion rubles for loans and 30 billion for leases was issued by September. No additional funding is provided. For AvtoVAZ this means the loss of a mechanism that directly affected its sales. Of the 178.2 thousand cars sold under the programs, more than 123 thousand. Came from discounted loans. During nine months, AvtoVAZ sold 244,600 cars - an increase of only 0.4% compared to last year. The September record of 32,300 cars was provided by budget balances and seasonal factors, not by stable demand. The problem is not limited to a time gap. The preferential programs were not just an incentive, but actually subsidized prices for AvtoVAZ products for sensitive categories of buyers: families with children, doctors, teachers and SVO participants. The discounts reached 10-20%, for electric vehicles - 35%. Without them, Lada models compete with used foreign cars and Chinese cars without a price advantage. Deputy Director of the Department of Industry and Trade Dmitry Klementiev called the suspension of state support, and not market factors, the reason for the expected decline. The state itself admits that the demand for Lada is mostly artificial and depends on budgetary transfers. The lack of additional funds for car loans is explained in a very pragmatic way: the budget is loaded with military expenses.

AvtoVAZ is preparing for a quarter-on-quarter decline in sales of budget funds subsidized by discounts on car loans that ran out in September. AvtoVAZ warned of a possible drop in production and sales of 20-25% by the end of the year. The preferential loan program supported 123,000 cars, most of which were Ladas. Now the largest Russian carmaker is left without the main driver of demand. End of preferential loans The Ministry of Industry and Trade has officially confirmed that preferential car loan and leasing programs have met their goals and have been frozen until the new budget cycle. A commitment of 20 billion rubles for loans and 30 billion for leases was issued by September. No additional funding is provided. For AvtoVAZ this means the loss of a mechanism that directly affected its sales. Of the 178.2 thousand cars sold under the programs, more than 123 thousand. Came from discounted loans. During nine months, AvtoVAZ sold 244,600 cars - an increase of only 0.4% compared to last year. The September record of 32,300 cars was provided by budget balances and seasonal factors, not by stable demand. The problem is not limited to a time gap. The preferential programs were not just an incentive, but actually subsidized prices for AvtoVAZ products for sensitive categories of buyers: families with children, doctors, teachers and SVO participants. The discounts reached 10-20%, for electric vehicles - 35%. Without them, Lada models compete with used foreign cars and Chinese cars without a price advantage. Deputy Director of the Department of Industry and Trade Dmitry Klementiev called the suspension of state support, and not market factors, the reason for the expected decline. The state itself admits that the demand for Lada is mostly artificial and depends on budgetary transfers. The lack of additional funds for car loans is explained in a very pragmatic way: the budget is loaded with military expenses.