The decline of the Russian automotive industry: KAMAZ has shortened the working week, AvtoVAZ has halted production
This has been reported by the Foreign Intelligence Service of Ukraine.
"Kamaz": losses and cutbacks
From 1 June 2026, Kamaz will switch to a four-day working week. This is not the first such move – a similar arrangement was already in place in the summer of 2025.
At the end of 2025, the company recorded a loss on sales of $284 million (the previous year had seen a profit of $11.3 million). In March 2026, the AKRA agency downgraded Kamaz’s credit rating from AA(RU) to A(RU), citing a decline in profitability and a deterioration in its ability to service debt.
Sales of heavy goods vehicles in Russia in January–February 2026 fell by approximately 40% compared with the same period last year. The key reason is the Central Bank’s tight monetary policy, which has made loans and leasing virtually inaccessible.
In the heavy-duty segment (over 16 tonnes), Kamaz still holds 37% of the market, but the Chinese firms FAW and Sitrak together already control 21%. In the medium-duty segment, JAC, Dongfeng and Foton collectively account for around 20%, offering better specifications at a lower price. The company’s management does not expect a profit for 2026, aiming only to break even.
AvtoVAZ: downtime and falling sales
AvtoVAZ is sending staff on company-organised leave in May, officially citing “large-scale modernisation of production lines”. The real reason is overstocked warehouses due to weak demand.
In March 2026, when the overall market for new passenger cars in Russia grew by 31%, Lada sales fell by 17.4%. AvtoVAZ became the only major player that failed to capitalise on the general upturn.
The market is being actively captured by localised Chinese models such as Haval, Tenet and Belgee, as well as global brands via parallel imports. Lada cannot compete on either price or consumer characteristics.
