AvtoVAZ scared of discounts on Chinese cars
The recycling fee was not enough for AvtoVAZ, the company demands subsidies from the state: what will the fight with Chinese automakers lead to and how to save money on buying a car in 2025.
AvtoVAZ Vice President Sergei Gromak made an important announcement for buyers: the plant's management is negotiating with the Ministry of Industry and Trade on the allocation of state subsidies for providing direct discounts to buyers.
— We are discussing various new formats of demand support measures with the Ministry of Industry and Trade. One of the options we are discussing is direct subsidies to automakers, which will be translated into discounts for buyers.
Sergey Gromak: AvtoVAZ negotiates with the Ministry of Industry and Trade on subsidies for discounts for buyers. Photo: Roscongress
If everything works out, the state itself will pay extra when buying a Lada. But it's not that simple.
The program to support demand for cars still exists. But it works in much the same way as the programs to support demand for new apartments. When applying for a preferential mortgage, the state subsidizes interest rates, and when applying for a preferential car loan, the down payment.
In 2025, Lada cars can be purchased under preferential state programs. Photo: lada.ru
In any case, when buying a car under a preferential program, you need to take out a loan and experience all the delights of dealing with banks that will carefully check your income and interest payments: the rate on preferential car loans should not exceed the key rate by more than 5 percentage points. That is, rates on preferential car loans can reach 26% per annum.
Interest rates on preferential car loans can reach up to 26%. Photo: 1MI
In 2025, there are three main programs for preferential car loans in Russia. The most modest discount of 10% on a car made in the Russian Federation for no more than 2 million rubles (this amount is deducted from the down payment) can be obtained under the Family Car program. Only large families with three or more children qualify for it.
A 20% discount can be received by employees of the education system, medical organizations, military personnel participating in the special military operations, and their family members, as well as disabled persons.
The biggest discount of 40% is provided to SVO participants with injuries. It applies only to cars with manual control. Lada Vesta is serially produced in the Russian Federation with manual control, and Kaliningrad's Avtotor has also released a batch of adapted Chinese SWM G01 crossovers.
The largest discount of 40% is available to wounded veterans of the SVO when purchasing a car with manual control. Photo: lada.ru
On the one hand, the agreements with the Ministry of Industry and Trade on providing direct subsidies to the automaker can be explained by concern for the welfare of the population. In this case, doctors, teachers, military personnel, disabled people and large families will be able to receive a discount without the obligatory registration of a loan.
On the other hand, AvtoVAZ will once again receive special preferences. The increase in the recycling fee has not helped the car plant much so far. In April 2025, Lada sales, according to Avtostat, fell by 32.6% compared to April 2024. Chinese manufacturers often feel more confident: Haval lost 11.4%, Chery - 15.6%.
AvtoVAZ sales fell by a third in April 2025. Photo: Avtostat
Dealers of Chinese brands, faced with a glut on the market, are now offering discounts without any additional conditions in the form of loans and imposed additional equipment.
To assess the scale of the discounts provided, you can personally visit car dealerships and talk to managers (this is the most effective way), or you can look at marketplaces - the final price for a cash purchase is immediately indicated there.
Dealers of Chinese brands are ready to give big discounts without additional conditions. Photo: Ozon
Changan, for example, gives a discount of almost 670 thousand rubles on the UNI-S crossover with a 181 hp turbo engine, robotic gearbox, panoramic roof, six airbags, climate control and a lot of auxiliary electronics. Such a car can be bought for 2.29 million rubles. This is close to the price of the Lada Vesta in the maximum configuration, which will still be deprived of all of the above.
The larger and more powerful Haval M6 in spring 2025 costs as much as a mid-range Lada Vesta SW Cross. Photo: Ozon
If you need a cheaper and more practical car, then Haval gives a discount of more than 331 thousand rubles on the M6 crossover with a turbo engine and robotic gearbox. As a result, the Chinese crossover, which will be larger and more powerful than the Lada Vesta in the station wagon body, will cost about 2.07 million rubles. Approximately the same (2.04 million rubles) costs the Lada Vesta SW Cross with a CVT in the mid-range Enjoy trim level.
The Chinese have something to offer even to lovers of sedans. The Omoda S5 is offered with a discount of 300 thousand rubles - you can buy such a car for 1.83 million rubles. This is the most direct competitor to the regular Vesta!
While Chinese manufacturers offer discounts that will make even the biggest bargain-lover's eyes light up, AvtoVAZ only raises prices. On May 12, prices for the Lada Granta increased by 25 thousand rubles, for the Niva Travel by 28 thousand, for the Niva Legend by 34 thousand, and for the Lada Vesta by 37 thousand rubles.
The new Lada crossover will be presented in June 2025. Photo: kremlin.ru
It seems that AvtoVAZ management has finally decided to fight for customers not by market methods and the creation of a competitive product, but by administrative resources.
The increase in the recycling fee, the law on taxi localization, subsidized discounts - all this puts AvtoVAZ and other brands on an unequal footing. But otherwise, with the current pricing policy, Lada has little chance of success. In June 2025, a new domestic crossover based on the Vesta should be shown at the SPIEF. This car will be a class higher, and therefore even more expensive. It will be very difficult for it to compete with Chinese competitors.
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