MOSCOW / RankWire.AI / – Russia intends to increase its yearly vehicle output to approximately 2.8 million units by 2035 as part of its revamped automotive industry strategy. First Deputy Prime Minister Denis Manturov announced this goal on Aug. 31 during a meeting focused on sector development. This figure encompasses both vehicles for Russia’s internal market and exports. The plan also envisions achieving an 80% share of locally produced vehicles in the new-vehicle market by 2035.
On Aug. 24, the Russian government approved the updated automotive strategy, extending the industry framework through 2035. By the end of 2025, Russia’s vehicle production capacity was around 3.3 million units annually. Actual production that year was close to 800,000 vehicles. During 2024 and 2025, capacity utilization averaged 25% for passenger cars and 41% for light commercial vehicles. Truck and bus production utilization rates reached 35% and 43%, respectively.
The scenario set for 2035 projects production at about 2.5 million passenger cars and roughly 170,000 light commercial vehicles. It also includes plans for 110,000 trucks and 30,000 buses. The strategy allocates passenger-car manufacturing across four or five vehicle platforms, while light commercial vehicles would utilize one or two platforms. The overall new-vehicle market is projected to reach approximately 3.2 million units in 2035, with imports making up to 20% of that market.
Production goals encompass all vehicle categories
A baseline scenario with more modest production and market figures is also part of the strategy. Under this plan, annual vehicle production in 2035 would total about 1.69 million units. The baseline scenario estimates the new-vehicle market at roughly 2.2 million units in that year. Conversely, the target scenario for 2030 foresees a new-vehicle market of about 2.4 million units, whereas the baseline projects approximately 2 million units across all segments.
Another critical component of the revised framework involves powertrain and technological targets. Internal-combustion vehicles are expected to represent between 67% and 83% of production in 2035, depending on segment. Electric and hybrid passenger cars should constitute at least 25% of Russia’s domestic new passenger-car sales by then. The plan also aims for the production of about 150,000 highly automated vehicles with Level 4 autonomy or higher in 2035, alongside driver-assistance and digital vehicle systems inclusion.
Localization and capacity benchmarks remain pivotal
Russia’s current manufacturing capacity exceeds its recent annual output significantly. Passenger-car capacity was approximately 2.8 million units in 2025, while actual production was near 700,000. Light commercial vehicle capacity reached about 300,000 units, with a production of around 80,000. Truck capacity was approximately 130,000 units, and bus capacity was close to 30,000. In 2025, Russian factories also produced roughly 4,400 electric powertrain vehicles, up from 4,200 in 2024.
The strategy emphasizes expanding the use of standardized components and technologies across vehicle platforms through 2035. It also aims to increase localization and technological independence in domestically manufactured vehicles. The framework covers passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous driving systems, and digital vehicle technologies. Its target scenario combines the goal of 2.8 million annual units with an 80% domestic-market share objective. The implementation plan will be finalized under the order that approved the updated strategy.