AvtoVAZ confirmed that all required legal steps to establish a new bank in Russia, named JSC Auto Finance Bank, have been completed, according to the company’s press office. The announcement signals a formal transition from planning to operation, aiming to embed financial services more deeply within the country’s automotive ecosystem and support local industry growth.
The new institution builds on the foundation laid by JSC RN-Bank, a credit institution originally established by AvtoVAZ. The transition occurred in the summer of 2023, positioning Auto Finance Bank as a strategic financial arm for the carmaker. Ownership structure at that time reflected a consortium in which Renault of France and Nissan of Japan held a combined 60 percent stake through Barn BV, with UniCredit Bank retaining the remaining 40 percent. This arrangement underlined the multinational backing for a financial vehicle intended to serve both the automotive sector and individual customers within Russia’s evolving market landscape.
Beyond consumer auto loans for new and used vehicles, the bank is slated to assume and expand its role in supplier and dealer financing. It will offer factoring services to automobile manufacturers to support the financing of dealer inventories, a move designed to stabilize the supply chain and ensure smoother flows of vehicles to customers amid a challenging economic environment. In parallel, the bank plans to broaden its corporate banking footprint, extending support to component suppliers and other stakeholders in the auto value chain, while also introducing services crafted for private customers. These include time deposits, enhanced payment solutions, and a broader range of financial products designed to facilitate everyday financial needs and strengthen consumer confidence in the domestic automotive market.
AvtoVAZ’s leadership envisions the bank as a central pillar in the national automotive industry, aligning with strategic goals aimed at achieving technological leadership and fulfilling the milestones laid out in Russia’s Industrial Development Strategy through 2035. The chairman, Maxim Sokolov, described Auto Finance Bank as an integral component that will help accelerate the sector’s transition toward higher value fabrication, greater domestic value addition, and more efficient capital deployment across car manufacturing and distribution networks. The company’s ambitious forecast includes a substantial expansion of the consumer loan portfolio and a significant uplift in profitability by the end of the decade, reflecting confidence in the institution’s ability to support broader industry resilience and growth.
Earlier in the year, AvtoVAZ reported record Lada sales for August, a milestone that reinforced the need for stronger financial backing and smoother credit access to sustain momentum in a competitive market. Market observers see the new bank as a potential catalyst for more predictable financing cycles, enabling dealerships to operate with greater certainty and bolstering consumer access to flexible automotive financing options. The ties to Renault and Nissan remain a backdrop for strategic collaboration, while the internal development of Auto Finance Bank signals a shift toward deeper, homegrown financial capabilities within Russia’s automotive sector. [Source: AvtoVAZ press office, updated for continuity in industry reporting]