AvtoVAZ has announced plans to broaden its preferential car loan program by including military personnel and retirees.
Currently, eligible families and first-time buyers can take advantage of the program, which offers a 20% discount on vehicles priced up to 2 million rubles when financed, and a 35% discount on electric cars. This expansion aims to further stimulate sales of domestically produced vehicles, said AvtoVAZ president Maxim Sokolov.
“There is a clear need to lift demand. We are seeing a noticeable decline in consumer interest in durable goods like cars. The goal here is not to commit direct financial aid from AvtoVAZ or other firms, but to provide social support for groups that can purchase vehicles but may delay the purchase during tougher times”, Sokolov explained, as reported by RIA Novosti.
At the same time, the current preferential loan program continues to serve as a major catalyst for keeping demand alive for Russian automotive products, according to the head of the Ministry of Industry and Trade, Denis Manturov. Officials indicated that the program would extend through the year 2023. This potential extension signals the government and industry seeking to preserve momentum in a challenging market, with hopes of stabilizing production and employment within the sector.
Whether the ministry will approve Maxim Sokolov’s proposal remains uncertain, but the proposal reflects a broader policy goal: to maintain access to affordable, reliable vehicles for more segments of the population while supporting domestic car manufacturing. The conversation around expanding eligibility highlights ongoing efforts to align public support with consumer realities, ensuring that households with stable credit capacity can secure a purchase even during periods of weaker demand. Industry observers note that maintaining such incentives is particularly relevant as the market navigates macroeconomic pressures and shifts in consumer behavior.