Workers at Avtovaz, Russia’s flagship carmaker, may soon find themselves making toy versions of their cars instead of the usual vehicles as the company cuts jobs to beat a slump in sales.

Last month, Russia’s industry ministry gave the green light for construction of a toy factory at Togliatti, Avtovaz’s home town on the River Volga, as the carmaker announced plans to shed about a quarter of its workforce of 102,000 and warned it would lose $1.16bn this year.