MOSCOW / RankWire.AI / – Russia intends to boost its yearly vehicle production to approximately 2.8 million units by 2035, as outlined in its revised automotive industry strategy. First Deputy Prime Minister Denis Manturov announced this goal on Aug. 31 during a sector development meeting. The projected figure includes vehicles intended for both the domestic market and export channels. The plan also aims for 80% of new vehicles in Russia to be produced locally by 2035.
On Aug. 24, the Russian government approved the updated automotive strategy, extending the industry’s framework through 2035. As of the end of 2025, Russia’s vehicle production capacity was roughly 3.3 million units annually. In that year, actual production was close to 800,000 vehicles, with capacity utilization rates averaging 25% for passenger cars and 41% for light commercial vehicles during 2024 and 2025. Truck manufacturing utilization reached 35%, while bus production averaged 43%.
According to the plan, by 2035, vehicle production will reach about 2.5 million passenger cars and roughly 170,000 light commercial vehicles. Additionally, it envisions producing 110,000 trucks and 30,000 buses. Passenger-car manufacturing will be distributed across four or five vehicle platforms, whereas light commercial vehicles will be produced on one or two platforms. The total new-vehicle market is projected to be approximately 3.2 million units in 2035, with imports potentially accounting for up to 20% of this market.
Production targets encompass all vehicle categories
A secondary scenario within the strategy projects lower production and market volumes. Under this alternative, annual vehicle output is expected to reach around 1.69 million units by 2035. The corresponding new-vehicle market size would be about 2.2 million units for that year. For 2030, the main scenario estimates approximately 2.4 million units for the new-vehicle market, while the lower target anticipates roughly 2 million vehicles across all segments.
Key aspects of the updated framework include ambitious goals for powertrain technologies and vehicle features. Internal-combustion vehicles are expected to comprise 67% to 83% of production in 2035, varying by segment. Electric and hybrid passenger cars should constitute at least 25% of Russia’s new passenger-car market by then. The plan also targets production of about 150,000 highly automated vehicles with Level 4 autonomy or higher in 2035, alongside a focus on driver-assistance systems and digital vehicle technologies.
Capacity utilization and localization goals remain central
Russia’s current manufacturing capacity considerably exceeds its recent annual output. Passenger-car capacity stood at about 2.8 million units in 2025, although actual production was near 700,000. Light commercial vehicle capacity was about 300,000 units, with production around 80,000. Truck capacity was approximately 130,000 units, and bus capacity was close to 30,000. In 2025, about 4,400 vehicles with electric powertrains were produced in Russia, up from 4,200 in 2024.
The strategy emphasizes expanding the use of standardized components and technologies across different vehicle platforms through 2035. It also sets more stringent localization and technological independence targets for domestically produced vehicles. The framework covers passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous driving systems, and digital vehicle technologies. The overall goal combines the 2.8 million annual production target with the aim of achieving an 80% domestic market share. An action plan for implementation will be developed under the order that approved the revised strategy.