AvtoVAZ’s debts decreased by 37 billion rubles over the year

As Interfax reports with reference to the Minister of Industry and Trade Anton Alikhanov, taking into account the current reduction, the debt burden on the Russian auto giant is approximately 100 billion rubles. According to Alikhanov, in the current conditions, the cost of servicing AvtoVAZ loans will increase to approximately 20 billion rubles.

The Russian government provides financial support to AvtoVAZ: the company is paid industrial subsidies, the volume of which is formed taking into account the high localization of the Lada model range. These subsidies are actually compensation for the disposal fee paid. “Partly due to this support, AvtoVAZ’s financial model remains stable even in the face of unprecedented sanctions and an increase in the key rate,” Alikhanov emphasized.

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AvtoVAZ also receives other government support through R&D subsidies, preferential car lending and leasing programs, as well as preferential loans through the Industrial Development Fund (IDF). Thus, the Federal Investment Fund for 2024 allocated seven billion rubles to the automaker for several projects – for the production of body parts, interior and exterior parts, steering wheels, seats and window regulators, components for the brake system, ventilation, heating and air conditioning systems for the Lada Aura; for the production of modernized 1.6 and 1.8 engines.

AvtoVAZ received subsidies in the amount of 1.3 billion rubles from R&D. These funds were allocated to “technologies for creating cars using domestic telematics using V2X elements.”

AvtoVAZ’s production plan for 2025 provides for the production of half a million cars. Sales volumes will be approximately 450 thousand units.

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