MOSCOW / RankWire.AI / – Russia plans to produce approximately 2.8 million vehicles annually by 2035 as part of its revised automotive industry strategy. First Deputy Prime Minister Denis Manturov announced this target on Aug. 31 during a meeting dedicated to the sector. The objective encompasses vehicles for both the domestic market and export destinations. Furthermore, Russia aims for locally produced vehicles to dominate at least 80% of its new-vehicle sales by 2035.
The government approved the updated industry plan on Aug. 24, extending the national framework through 2035. At the end of 2025, Russia’s vehicle manufacturing capacity was about 3.3 million units per year, with factories producing roughly 800,000 vehicles that year. Utilization rates during 2024 and 2025 were 25% for passenger cars, 41% for light commercial vehicles, 35% for trucks, and 43% for buses.
Under the projected scenario, Russia would produce 2.5 million passenger vehicles each year by 2035. Production would also include around 170,000 light commercial vehicles, 110,000 trucks, and 30,000 buses. The strategy distributes passenger-car output across four or five platforms, while light commercial vehicles would be produced across one or two platforms. It also envisions Russia’s total new-vehicle market reaching approximately 3.2 million units in 2035, with imports accounting for up to 20% of that volume.
Vehicle manufacturing aims span multiple segments
Additionally, the document offers a baseline scenario with lower market and production figures. This projection estimates annual vehicle output at around 1.69 million units in 2035, with the new-vehicle market size roughly 2.2 million units in the same year. For 2030, the target scenario anticipates a market of about 2.4 million vehicles, whereas the baseline scenario predicts roughly 2 million units.
Russia’s automotive strategy also establishes goals for powertrain development, autonomous driving capabilities, and digital vehicle systems. Internal-combustion engine models are expected to make up between 67% and 83% of 2035 production, depending on the segment. Electric and hybrid passenger vehicles are targeted to account for at least 25% of the domestic new passenger-car market. The plan further aims to produce approximately 150,000 vehicles with Level 4 automation or higher by 2035.
Production capacity remains above current output levels
In 2025, passenger-car manufacturing capacity was near 2.8 million units, while actual production was about 700,000 cars. Light commercial vehicle capacity reached approximately 300,000 units, with factory output close to 80,000. Truck capacity was around 130,000 units, and buses totaled near 30,000. Additionally, Russian factories produced roughly 4,400 electric-powered vehicles in 2025, compared to around 4,200 units the previous year.
The strategy also emphasizes expanding the use of standardized components and technologies across various vehicle platforms. It sets benchmarks for localization and technological independence for domestically manufactured vehicles. The framework encompasses passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous systems, and vehicle software. Its target scenario projects an annual production of 2.8 million vehicles with an 80% market share for domestic sales, with an implementation plan required as part of the approval process.