Have a Baby, Get a Lada—Russia Proposes Car Discounts to Boost Birthrate

To combat its declining birthrate, Russia is considering new financial incentives for families, including a 25% discount on Lada cars for parents having additional children, according to a report by the Public Chamber and Rosstat, cited by Russian media RBC on February 26.

The proposal is part of a broader plan to encourage women aged 30–40 to have a third or subsequent child, as experts believe this group holds the most potential for improving Russia’s demographic outlook.

Other suggested measures include mortgage subsidies of up to $11,580 (1 million rubles) per child, higher monthly pregnancy benefits, and universal child allowances for families with multiple children.

Currently, the 25% car discount is only available in Russia’s Far East for buyers of domestically made vehicles, including Lada, UAZ, and GAZ models.

If expanded, the program could serve as an additional incentive for larger families nationwide. Electric vehicles already qualify for a 35% subsidy, up to $10,825 (925,000 rubles).

While such policies could have a positive effect, experts warn that financial incentives alone won’t reverse Russia’s demographic decline.

Government officials estimate that achieving population growth levels seen in EU countries would require at least 2.7% of Russia’s GDP, or around $63.1 billion (5.4 trillion rubles) in family support programs. Whether the Kremlin will move forward with such large-scale spending remains to be seen.

Meanwhile, Russia’s birthrate continues to fall. In the first 11 months of 2024, just 1.124 million babies were born, bringing birth levels back to those seen during the country’s worst demographic crisis in the early 2000s.

Earlier, Russian preschools marked the beginning of 2025—the year Russian leader Vladimir Putin declared the “Year of the Defender of the Fatherland"—by staging mass military-patriotic drills for young children, forcing them to throw toy grenades, crawl through snow, and weave camouflage nets.