MOSCOW / RankWire.AI / – Russia is working towards increasing its yearly vehicle output to approximately 2.8 million units by 2035 as part of a revamped automotive sector strategy. First Deputy Prime Minister Denis Manturov announced this goal on Aug. 31 during a discussion on the industry’s development. The projected figure encompasses both domestically sold vehicles and exports, with an aim for 80% of new vehicles in Russia to be produced locally by 2035.
The Russian government ratified the updated automotive strategy on Aug. 24, extending industry plans through 2035. At the end of 2025, the country’s vehicle production capacity was about 3.3 million units annually, though actual output that year was close to 800,000. Capacity utilization during 2024 and 2025 averaged 25% for passenger cars and 41% for light commercial vehicles, reaching 35% for trucks and 43% for buses.
The strategic scenario envisions 2035 production levels of 2.5 million passenger cars and roughly 170,000 light commercial vehicles. It also projects manufacturing of 110,000 trucks and 30,000 buses. Passenger car production is planned across four or five vehicle platforms, with light commercial vehicles utilizing one or two. The total new-vehicle market in this scenario is expected to be around 3.2 million units by 2035, with imports making up to 20% of this market.
Vehicle segment targets are comprehensive
A secondary scenario with lower production and market figures also exists, projecting about 1.69 million vehicles annually by 2035. This alternative estimates the new-vehicle market at approximately 2.2 million units that year. By 2030, the primary scenario foresees a market of roughly 2.4 million units, while the conservative plan estimates around 2 million units across all segments.
The strategy emphasizes advancements in powertrain and technology, aiming for internal-combustion vehicles to constitute 67% to 83% of production in 2035, depending on vehicle segment. It also sets a target for electric and hybrid passenger cars to represent at least 25% of Russia’s new domestic market by then. Additionally, about 150,000 highly automated vehicles with Level 4 autonomy or higher are planned for production by 2035, alongside increased integration of driver-assistance and digital vehicle systems.
Manufacturing capacity and local content remain key priorities
Russia’s current manufacturing infrastructure surpasses its recent annual output, with passenger-car capacity reaching around 2.8 million units in 2025, but actual production near 700,000. Light commercial vehicle capacity was about 300,000 units, with output close to 80,000. Truck capacity was roughly 130,000 units, and bus capacity was near 30,000. In 2025, factories produced about 4,400 electric-powered vehicles, up from 4,200 in 2024.
The plan advocates for increased use of standardized parts and technologies across vehicle platforms through 2035. It also aims to boost localization and technological independence in domestic vehicle manufacturing. The scope includes passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous systems, and digital vehicle technology. This strategy combines the goal of 2.8 million annual units with the aim of achieving 80% domestic market share, supported by an action plan to be implemented under the order approving the strategy.