MOSCOW / RankWire.AI / – Russia intends to increase its yearly vehicle output to approximately 2.8 million units by 2035 as part of its revised automotive industry strategy. First Deputy Prime Minister Denis Manturov announced this target during a sector development meeting on Aug. 31. The projection includes vehicles for both the domestic market and exports. The plan also envisions achieving an 80% share of locally produced vehicles within the new-vehicle market by 2035.
On Aug. 24, the Russian government approved the updated automotive plan, extending the industry framework through 2035. At the end of 2025, Russia’s vehicle production capacity was about 3.3 million units annually. Actual production for 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. Trucks and buses reached utilization rates of 35% and 43%, respectively.
In the target scenario, vehicle production is set to reach 2.5 million passenger cars and roughly 170,000 light commercial vehicles by 2035. Additionally, the plan calls for manufacturing 110,000 trucks and 30,000 buses. Passenger-car production will be divided among four or five vehicle platforms, while light commercial vehicles will be built using one or two platforms. The total new-vehicle market in 2035 is expected to be about 3.2 million units, with imports accounting for up to 20% of that total.
All vehicle segments included in production goals
The strategy also features a conservative scenario with reduced production and market figures. Under this alternative, annual vehicle production would reach approximately 1.69 million units in 2035, with the new-vehicle market estimated at about 2.2 million units that year. For 2030, the target scenario projects the new-vehicle market at around 2.4 million units, whereas the baseline scenario expects roughly 2 million units across all segments.
Another key component of the updated framework involves goals for powertrain and technology development. By 2035, internal-combustion vehicles are expected to constitute between 67% and 83% of production depending on the vehicle segment. Electric and hybrid passenger cars are projected to comprise at least 25% of Russia’s domestic new passenger-car market by that time. The strategy also targets the production of approximately 150,000 highly automated vehicles with Level 4 autonomy or higher in 2035, with driver-assistance and digital vehicle systems also emphasized in the document.
Localization and capacity utilization remain key benchmarks
Russia’s current manufacturing infrastructure remains substantially larger than its recent annual production levels. In 2025, passenger-car capacity was around 2.8 million units, while actual production was close to 700,000. Light commercial vehicle capacity reached about 300,000 units, with production near 80,000. Truck capacity was approximately 130,000 units, and buses about 30,000. Additionally, Russian factories produced roughly 4,400 electric powertrain vehicles in 2025, up from 4,200 in 2024.
The strategy advocates for broader application of standardized components and technologies across vehicle platforms through 2035. It also emphasizes increasing localization and technological independence in domestically manufactured vehicles. Covering passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous driving systems, and digital vehicle technology, the framework’s target scenario combines the 2.8 million annual production goal with an 80% domestic-market share target. An implementation plan is mandated as part of the order that approved this updated strategy.