MOSCOW / RankWire.AI / – Russia has outlined an ambitious plan to boost its yearly vehicle manufacturing to approximately 2.8 million units by 2035, as part of its newly revised automotive industry strategy. During a sector development meeting on Aug. 31, First Deputy Prime Minister Denis Manturov announced this target. The projection encompasses both vehicles intended for the domestic market and exports, with a goal of achieving 80% local production in the new-vehicle segment by 2035.
Back in late August, the Russian government approved the updated automotive strategy, extending its industry framework through 2035. By the end of 2025, Russia’s vehicle production capacity was around 3.3 million units annually, although actual output that year was close to 800,000. During 2024 and 2025, capacity utilization averaged 25% for passenger cars and 41% for light commercial vehicles, with truck and bus utilization rates reaching 35% and 43%, respectively.
Projected figures for 2035 include about 2.5 million passenger cars, roughly 170,000 light commercial vehicles, 110,000 trucks, and 30,000 buses. The plan designates four or five vehicle platforms for passenger-car production, while light commercial vehicles are expected to be produced on one or two platforms. Overall, the new-vehicle market in 2035 is estimated at approximately 3.2 million units, with imports potentially covering up to 20% of that total.
Production targets encompass all vehicle categories
In addition, the strategy features a baseline scenario with reduced production and market figures. Under this alternative, annual vehicle output would reach about 1.69 million units in 2035, with the new-vehicle market being around 2.2 million units that year. By 2030, the target scenario anticipates a new-vehicle market of about 2.4 million units, whereas the baseline scenario projects roughly 2 million units across all segments for that year.
A key part of the updated strategy involves setting goals for powertrains and technological advancements. It envisions internal-combustion vehicles comprising between 67% and 83% of production in 2035, depending on the vehicle type. By then, electric and hybrid passenger cars are expected to account for at least 25% of Russia’s domestic new passenger-car market. The plan also aims to produce approximately 150,000 highly automated vehicles with Level 4 autonomy or higher, including driver-assistance and digital vehicle systems, which are also highlighted within the document.
Capacity utilization and localization priorities remain central
As of 2025, Russia’s manufacturing infrastructure considerably exceeds its actual annual vehicle production. Passenger-car capacity was about 2.8 million units, but only around 700,000 units were produced. Light commercial vehicle capacity stood at approximately 300,000, with a production volume near 80,000. The truck capacity was estimated at about 130,000 units, while bus capacity was close to 30,000. In that year, Russian factories also produced about 4,400 electric powertrain vehicles, marking a slight increase from 4,200 in 2024.
The strategy emphasizes expanding the use of standardized components and technologies across vehicle platforms through 2035. It also aims for higher levels of localization and technological independence in domestically assembled vehicles. Covering passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous driving systems, and digital vehicle technologies, the framework aligns the 2.8 million annual production goal with the objective of 80% domestic-market share. An action plan for implementation will be developed under the order that approved this updated strategy.