Avtovaz Gears Up: Russia's Top Carmaker Returns to Full Schedule in 2025

Avtovaz, Russia's largest carmaker, is set to reinstate a full five-day work week starting January 1. This comes after three months of reduced hours due to weak market demand. The company continues hiring and plans no layoffs as it navigates economic challenges and a fluctuating car market.

Russia's largest carmaker, Avtovaz, announced plans to resume its five-day work week on January 1, following a three-month period of reduced working hours caused by dwindling production demands. This move marks a cautious optimism as Russia's car market shows slight recovery signs toward the end of 2025.

Despite the decrease in inventory, Avtovaz continues its hiring initiatives with no planned layoffs, pointing to a decrease in voluntary resignations. The company's decision to shorten the work week on September 29 aimed at aligning production with market demands and managing surplus stock.

Factors such as high central bank interest rates and increased recycling fees have pressured the industry, contributing to a 46.7% drop in Russian car production in October. Sluggish domestic demand and the stalling export market underline the challenges faced by the sector as the war economy impacts industrial activity.

(With inputs from agencies.)