KAMAZ and AvtoVAZ have halted production due to a sharp drop in sales and losses
Russia’s two largest automakers—KAMAZ and AvtoVAZ—have found themselves in a systemic crisis, one that official rhetoric about the industry’s “resilience” can no longer conceal.
This is evidenced by data from the Foreign Intelligence Service of Ukraine.
Starting June 1, 2026, Kamaz will switch to a four-day workweek. This is not the first such measure—a similar schedule was implemented in the summer of 2025.
At the end of 2025, the company reported a net loss of $284 million, whereas a year earlier it had recorded a profit of $11.3 million.
In March 2026, the AKRA agency downgraded the company’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 trucks in Russia in January–February 2026 fell by approximately 40% year-over-year. The main reason cited is the Russian Central Bank’s tight monetary policy, which has made loans and leasing less accessible.
Despite retaining a 37% market share in the heavy-duty segment, Chinese manufacturers FAW and Sitrak already control about 21% of the market. In the medium-duty segment, the combined market share of JAC, Dongfeng, and Foton reaches about 20%.
Kamaz management does not expect a profit in 2026, forecasting only a return to break-even.
AvtoVAZ is sending employees on a corporate leave in May, officially citing the modernization of production lines. However, the actual reason cited is overcrowded warehouses due to weak demand.
In March 2026, despite a 31% growth in the Russian auto market, Lada sales fell by 17.4%. AvtoVAZ became the only major player that did not benefit from the general recovery.
The market is being actively captured by localized Chinese brands such as Haval, Tenet, and Belgee, as well as cars entering through parallel imports. As a result, Lada is losing ground in terms of both price and performance.
It is also noted that Kirill Dmitriev, head of the Russian Direct Investment Fund and considered close to the Kremlin, visited the U.S. in February 2026 for consultations on a possible “settlement” of the war against Ukraine.
Recently, the Russian company “New Cloud Technologies,” known under the brand “MyOffice,” announced large-scale staff cuts amid significant financial losses.
It is worth noting that the actual poverty rate in Russia may be significantly higher than official figures and could be approaching 40% of the population.
