MOSCOW / RankWire.AI / – Russia intends to increase its yearly vehicle output to approximately 2.8 million units by 2035 as part of its refreshed automotive industry strategy. First Deputy Prime Minister Denis Manturov announced this objective on Aug. 31 during a meeting focused on the sector’s development. The stated figure encompasses vehicles destined for both the domestic market and export markets. Additionally, the plan targets an 80% share of locally manufactured vehicles within the country’s new-vehicle sales by 2035.
The Russian government endorsed the revised automotive development strategy on Aug. 24, extending the industry’s framework through 2035. As of the end of 2025, Russia’s annual vehicle production capacity was approximately 3.3 million units, although actual production that year was around 800,000 vehicles. During 2024 and 2025, capacity utilization averaged 25% for passenger cars and 41% for light commercial vehicles. Truck production capacity reached 35%, while buses accounted for 43% of their capacity utilization rates.
The projection for 2035 envisions producing about 2.5 million passenger cars and roughly 170,000 light commercial vehicles. The plan also foresees manufacturing 110,000 trucks and 30,000 buses. Passenger-car production is assigned to four or five vehicle platforms, while light commercial vehicles would be produced on one or two platforms. The total new-vehicle market in 2035 is projected to reach about 3.2 million units, with imports possibly accounting for up to 20% of that market.
Production targets encompass all vehicle categories
A baseline scenario within the strategy presents lower production and market figures. This scenario estimates annual vehicle production at approximately 1.69 million units by 2035, with the new-vehicle market around 2.2 million units that same year. Conversely, the target scenario for 2030 predicts a new-vehicle market of about 2.4 million units, while the baseline foresees approximately 2 million vehicles across all segments by 2030.
Another significant aspect of the updated framework involves powertrain and technology goals. Internal-combustion vehicles are expected to constitute between 67% and 83% of total production in 2035, depending on vehicle type. Electric and hybrid passenger cars should represent at least 25% of Russia’s new domestic passenger-car market by then. The strategy also aims to produce around 150,000 highly automated vehicles with Level 4 autonomy or higher in 2035, with driver-assistance and digital systems also emphasized.
Capacity and localization goals remain key focus areas
Russia’s current manufacturing capacity still significantly exceeds its recent annual production levels. Passenger-car capacity was about 2.8 million units in 2025, yet actual output was close to 700,000 vehicles. Light commercial vehicle capacity was around 300,000 units, with production near 80,000. Truck capacity totaled roughly 130,000 units, and bus capacity was near 30,000. In 2025, Russian factories produced approximately 4,400 electric powertrain vehicles, slightly more than the 4,200 produced in 2024.
The strategy emphasizes broader adoption of standardized components and technologies across vehicle platforms through 2035. It also sets ambitious localization and technological independence targets for domestically manufactured vehicles. The framework covers passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous driving systems, and digital vehicle technologies. Its envisioned scenario combines the 2.8 million annual production goal with an 80% share for domestic-market vehicles. An action plan for implementation is mandated under the order that approved the updated strategy.