MOSCOW / RankWire.AI / – Russia intends to boost its yearly vehicle manufacturing to approximately 2.8 million units by 2035, as outlined in its revised automotive industry plan. First Deputy Prime Minister Denis Manturov announced this goal on Aug. 31 during a sector development discussion. This figure encompasses vehicles produced for both the domestic market and exports. The strategy also aims for an 80% share of locally manufactured vehicles in the new-vehicle market by 2035.
The Russian government approved the updated automotive strategy on Aug. 24, extending the industry framework through 2035. At the end of 2025, Russia’s vehicle production capacity was roughly 3.3 million units annually. The actual output in that year was around 800,000 vehicles. Capacity utilization during 2024 and 2025 averaged 25% for passenger cars and 41% for light commercial vehicles. Trucks had a utilization rate of 35%, while buses reached 43%.
The projected scenario envisions 2035 production levels of 2.5 million passenger cars and approximately 170,000 light commercial vehicles. It also anticipates manufacturing of 110,000 trucks and 30,000 buses. Passenger-car output would be distributed across four or five vehicle platforms, while light commercial vehicles would utilize one or two. The plan estimates the total new-vehicle market at about 3.2 million units in 2035, with imports making up to 20% of that total.
Production ambitions cover all vehicle categories
A lower base scenario is also part of the strategy, projecting reduced production and market figures. Under this alternative, annual vehicle output could reach roughly 1.69 million units by 2035. The corresponding new-vehicle market size in that scenario is approximately 2.2 million units. By 2030, the target scenario anticipates a market of about 2.4 million units, while the base scenario estimates around 2 million vehicles across all segments.
Another key element of the updated plan involves goals related to powertrains and technological development. By 2035, internal-combustion vehicles are expected to constitute between 67% and 83% of production, depending on vehicle type. Electric and hybrid passenger cars are projected to reach a minimum of 25% of Russia’s domestic new passenger-car segment. Additionally, the strategy aims to produce approximately 150,000 highly automated vehicles with Level 4 autonomy or higher. Driver-assistance and digital vehicle systems are also highlighted within the framework.
Manufacturing capacity and localization remain key priorities
Despite recent figures, Russia’s manufacturing infrastructure remains significantly larger than its actual annual output. Passenger-car capacity was around 2.8 million units in 2025, while production was near 700,000. The capacity for light commercial vehicles reached about 300,000 units, contrasted with a production of roughly 80,000. Truck capacity stood at approximately 130,000 units, and bus capacity was close to 30,000. In 2025, Russian factories produced about 4,400 vehicles with electric powertrains, up from 4,200 in 2024.
The strategy emphasizes increased use of standardized components and technologies across vehicle platforms through 2035. It also sets higher targets for localization and technological independence for domestically assembled vehicles. The comprehensive framework encompasses passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous driving systems, and digital vehicle technologies. The ultimate goal combines the 2.8 million annual production target with an 80% domestic market share. An implementation plan will be developed under the order that approved the updated strategy.