MOSCOW / RankWire.AI / – Russia plans to escalate its yearly vehicle manufacturing to approximately 2.8 million units by 2035 as part of its revised automotive sector plan. First Deputy Prime Minister Denis Manturov announced this target on Aug. 31 during a meeting dedicated to the development of the industry. This projected figure encompasses both domestically sold vehicles and exports. Additionally, the strategy aims for an 80% share of locally produced vehicles in the new-vehicle market by 2035.
The Russian government approved the updated automotive strategy on Aug. 24, extending the industry’s framework through 2035. By the end of 2025, Russia’s annual vehicle production capacity was about 3.3 million units. In that same year, actual output was near 800,000 vehicles. Capacity utilization averaged 25% for passenger cars and 41% for light commercial vehicles across 2024 and 2025. Truck and bus production rates reached 35% and 43%, respectively.
The envisioned scenario projects a 2035 production of around 2.5 million passenger cars and approximately 170,000 light commercial vehicles. It also proposes manufacturing 110,000 trucks and 30,000 buses. The plan assigns passenger car production to four or five vehicle platforms, while light commercial vehicles would utilize one or two. The same scenario estimates the total new-vehicle market at roughly 3.2 million units in 2035, with imports potentially accounting for up to 20% of this market.
Production goals encompass all vehicle categories
The strategy also presents a more conservative baseline scenario with lower production and market projections. Under this plan, annual vehicle output would reach about 1.69 million units by 2035, and the new-vehicle market would be around 2.2 million units that year. For 2030, the target scenario estimates the market at approximately 2.4 million units, while the baseline projects about 2 million vehicles across all segments.
Key targets also include powertrain and technological advancements. Internal-combustion engine vehicles are expected to comprise 67% to 83% of production in 2035, varying by vehicle segment. Electric and hybrid passenger cars should constitute at least 25% of Russia’s domestic new passenger-car sales by that year. Furthermore, the plan aims to produce roughly 150,000 highly automated vehicles with Level 4 autonomy or higher in 2035. Driver-assistance systems and digital vehicle features are also emphasized in the document.
Emphasis on capacity utilization and localization remains key
Russia’s current manufacturing infrastructure remains significantly larger than its recent annual output. Passenger-car capacity was approximately 2.8 million units in 2025, whereas actual production hovered near 700,000. Light commercial vehicle capacity reached about 300,000 units, with actual output around 80,000. Truck capacity totaled roughly 130,000 units, and bus capacity was near 30,000. In 2025, Russian factories produced about 4,400 vehicles with electric powertrains, up from 4,200 in 2024.
The strategy emphasizes expanding the use of standardized components and technologies across vehicle platforms through 2035. It also sets more ambitious localization and technological independence goals for domestically manufactured vehicles. Covering passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous driving systems, and digital vehicle technology, the framework combines the target 2.8 million annual production with the aim for 80% domestic market share. An implementation plan is mandated by the order that approved this updated strategy.