GAZ Group, in collaboration with its dealer partner, has renewed a preferential car sales initiative. The program offers a discount on new vehicles in exchange for recycling an old car, a strategy designed to boost demand for vehicles manufactured by the GAZ Group. This development was communicated to socialbites.ca by the GAZ Group’s press service. The auto manufacturer stressed that the move was driven by internal constraints, including a shortage of working capital and the absence of suitable financial instruments from customers who had paused investments.
To stimulate demand, GAZ, together with the brand’s distributor, CTT, introduced anti-crisis financial options. A recycling program was launched that provides discounts when customers replace an older car with a new model, along with terms for special leasing and various discounted promotions, according to the GAZ Group press service as reported to socialbites.ca.
The truck producer expects the recycling and preferential leasing schemes to lift demand. At the same time, the company noted that financing would be available only for a limited period due to rising costs linked to components, supply chain disruptions, storage expenses, and the replacement of key parts beginning in late February. The programs were stated to be valid only through June 30, 2022, with hopes that additional government measures would emerge to further support demand. The press release highlighted that the recycling initiative had proven effective during 2010–2018 and that a subsidized rental program for gas engine equipment had also shown positive results.
Historically, Russia’s state program for automobile scrap destruction operated from 2010 to 2018 and was widely recognized within the professional automotive community as a highly effective tool for promoting domestic vehicle production and sales. Budget allocations of about 8–23 billion rubles annually supported the program, enabling the sale of up to 320,000 cars per year through this financial instrument.
Earlier communications noted that simplified UAZ vehicles were slated to go on sale in July 2022.