Russia’s largest carmaker Avtovaz announced on Thursday that it plans to restore a full five-day working week starting January 1, 2026, following three months of reduced hours. The move reflects a modest improvement in the company’s production outlook.

Avtovaz, which employs over 30,000 people, had cut its work week beginning September 29 to align output with weak domestic demand and manage inventory levels. The company emphasized that no layoffs are planned, hiring continues, and voluntary resignations are declining.

The Russian car market has shown early signs of recovery toward the end of 2025, partly due to buyers anticipating price rises driven by higher scrappage fees. Avtovaz and other domestic manufacturers are expected to be cushioned by state support.

The working schedule and number of shifts will remain flexible and dependent on market demand.

Passenger car production in Russia fell 46.7% in October compared with a year ago, and the market is projected to shrink about 20% in 2025. Earlier in October, Reuters reported that some of Russia’s major industrial companies had been placing employees on furlough or cutting staff as the war economy slows, domestic demand weakens, and exports fall.