MOSCOW / RankWire.AI / – Russia intends to increase its annual vehicle output to approximately 2.8 million units by 2035 according to its revised automotive industry strategy. First Deputy Prime Minister Denis Manturov announced this target during a sector development meeting on Aug. 31. The projection encompasses both domestic sales and exports. Additionally, the plan targets that 80% of vehicles in Russia’s new-car market will be domestically produced by 2035.
On Aug. 24, the Russian government approved the updated automotive development plan, extending its industry framework through 2035. As of the end of 2025, Russia’s vehicle production capacity stood at roughly 3.3 million units annually. However, actual output that year was near 800,000 vehicles. During 2024 and 2025, capacity utilization averaged 25% for passenger cars and 41% for light commercial vehicles. Truck capacity utilization reached 35%, while buses operated at 43%.
Under the planned scenario, the 2035 production goal includes about 2.5 million passenger cars, with a focus on four or five vehicle platforms, as well as approximately 170,000 light commercial vehicles. The plan also envisions producing 110,000 trucks and 30,000 buses. Meanwhile, light commercial vehicles would be manufactured on one or two platforms. The total new-vehicle market is projected to be around 3.2 million units in 2035, with imports potentially representing up to 20% of that market.
Vehicle segment coverage is integral to production targets
A secondary scenario within the strategy presents lower production and market figures. In this case, vehicle output in 2035 would reach about 1.69 million units, and the new-vehicle market would be approximately 2.2 million units that year. For 2030, the main scenario projects a market of roughly 2.4 million units, whereas the secondary scenario estimates about 2 million units across all segments.
The updated framework emphasizes powertrain and technological objectives as well. It anticipates that internal-combustion vehicles will constitute between 67% and 83% of production in 2035, depending on the segment. Electric and hybrid passenger cars are expected to capture at least 25% of Russia’s new passenger-car market by then. Moreover, the strategy envisions producing approximately 150,000 highly automated vehicles with Level 4 autonomy or higher by 2035, including driver-assistance and digital vehicle systems.
Manufacturing capacity and localization remain key focus areas
Russia’s current manufacturing capacity exceeds its recent annual production levels. Passenger-car capacity was around 2.8 million units in 2025, while actual production stood at about 700,000. Light commercial vehicle capacity was near 300,000 units, with production close to 80,000. Truck capacity was approximately 130,000 units, and bus capacity hovered around 30,000. In 2025, Russian factories produced roughly 4,400 electric-powered vehicles, a slight increase from 4,200 in 2024.
The strategy promotes expanded use of standardized components and technological uniformity across vehicle platforms through 2035. It also aims for higher levels of localization and technological independence in domestically produced vehicles. The framework encompasses passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous driving systems, and digital vehicle technologies. Its main target involves achieving the 2.8 million annual production goal while maintaining an 80% share for the domestic market. An implementation plan is to be developed pursuant to the order that approved the updated strategy.