MOSCOW / RankWire.AI / – Russia is moving forward with its goal to increase yearly vehicle manufacturing to approximately 2.8 million units by 2035 as part of its updated automotive industry strategy. During a sector development meeting on Aug. 31, First Deputy Prime Minister Denis Manturov announced this target, which encompasses vehicles intended for both the domestic market and export. The plan additionally aims for 80% of new vehicles in Russia to be locally produced by 2035.
The Russian government formally endorsed the revised automotive strategy on Aug. 24, extending the industry framework through 2035. As of the end of 2025, Russia’s vehicle production capacity was approximately 3.3 million units annually, yet actual output that year was close to 800,000 vehicles. Capacity utilization averaged 25% for passenger cars, 41% for light commercial vehicles during 2024 and 2025, with figures reaching 35% for trucks and 43% for buses.
Under the projected scenario, production targets for 2035 include about 2.5 million passenger cars and roughly 170,000 light commercial vehicles. The plan also envisions manufacturing 110,000 trucks and 30,000 buses. Passenger-car production is expected to be spread across four or five vehicle platforms, while light commercial vehicles would be built on one or two. The overall new-vehicle market in 2035 is projected to reach approximately 3.2 million units, with imports potentially making up to 20% of that total.
The plan encompasses all vehicle segments for production targets
A secondary, lower-volume scenario is included within the strategy, projecting about 1.69 million vehicles produced annually by 2035, with the new-vehicle market estimated at around 2.2 million units that year. For 2030, the target scenario anticipates a market size of roughly 2.4 million units, whereas the lower scenario suggests approximately 2 million units across all segments in 2030.
Significant emphasis is also placed on powertrain and technological development. The updated framework indicates that internal-combustion vehicles will represent 67% to 83% of production in 2035, depending on the vehicle type, while electric and hybrid passenger cars are expected to comprise at least 25% of Russia’s domestic new passenger-car market by that time. Additionally, the strategy aims for the production of about 150,000 highly automated vehicles with Level 4 autonomy or higher in 2035, with driver-assistance and digital vehicle systems also being key components of the plan.
Manufacturing capacity and localization efforts remain core priorities
Russia’s existing manufacturing infrastructure exceeds its recent annual production figures; passenger-car capacity was around 2.8 million units in 2025, while actual production was near 700,000. Light commercial vehicle capacity stood at roughly 300,000 units, with production close to 80,000. Truck capacity was approximately 130,000 units, and bus capacity about 30,000. In 2025, Russian factories also produced roughly 4,400 electric powertrain vehicles, slightly up from 4,200 in 2024.
The strategy emphasizes increasing the use of standardized components and technologies across vehicle platforms through 2035, along with raising localization and technological independence targets for domestically manufactured vehicles. The comprehensive framework encompasses passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous systems, and digital vehicle technologies. Its central goal combines the target of 2.8 million units produced annually with the objective of achieving 80% domestic market share, supported by an implementation action plan as mandated by the order that approved the strategy.