War is a priority: Kremlin is bringing Russian auto industry to collapse
russian car manufacturers, amidst the crisis, continue to beg the state for help to stay afloat. For instance, “AvtoVAZ” is unable to cope with the drop in demand and is asking the government to compensate for discounts given to buyers.
▫️ Since the beginning of 2025, lada car sales have dropped by over 20%, and overall, the russian passenger car industry has lost a quarter of its market. The reasons include expensive loans, limited access to technologies due to sanctions, an oversupply of cheaper imported cars, and the general impoverishment of consumers.
Despite loud statements from russian propaganda about “import substitution” and “stability,” the russian automotive industry relies on state subsidies. Previously, russia could afford to financially support large companies as a matter of image — showing that sanctions “don’t work.” But after three years of full-scale war, resources are dwindling, and kremlin increasingly faces the choice: save business or finance the war. And each time, the choice is war — to the detriment of the economy and russia’s future.
