MOSCOW / RankWire.AI / – Russia has established a target to manufacture approximately 2.8 million vehicles annually by 2035 as part of its updated strategy for the automotive sector. First Deputy Prime Minister Denis Manturov announced this goal on August 31 during a sector-focused meeting. The plan encompasses both vehicles intended for the domestic market and those for export, with Russia aiming for locally produced vehicles to capture at least 80% of its new-vehicle market share by 2035.
On August 24, the Russian government endorsed the revised industry strategy, extending the national framework through 2035. At the end of 2025, Russia’s vehicle manufacturing capacity was approximately 3.3 million units per year, though actual production that year was about 800,000 vehicles. During 2024 and 2025, capacity utilization remained at 25% for passenger cars, 41% for light commercial vehicles, 35% for trucks, and 43% for buses.
Under the projected scenario, Russia would produce around 2.5 million passenger vehicles annually by 2035, complemented by approximately 170,000 light commercial vehicles, 110,000 trucks, and 30,000 buses. The strategy allocates passenger-car production across four or five vehicle platforms, while light commercial vehicles would be manufactured on one or two platforms. Additionally, the total new-vehicle market in Russia is projected to reach about 3.2 million units in 2035, with imports making up to 20% of that market share.
The vehicle production goal spans multiple segments
The strategy also presents a conservative scenario with lower market and manufacturing volumes, estimating annual vehicle output at around 1.69 million units for 2035. This projection envisions a new-vehicle market of roughly 2.2 million units in the same year, while the more optimistic target scenario forecasts a market of approximately 2.4 million vehicles by 2030, contrasting with a baseline projection of about 2 million units.
Russia’s automotive development plan also includes objectives related to powertrain technology, autonomous driving capabilities, and digital vehicle systems. It anticipates that internal-combustion engine models will constitute between 67% and 83% of production in 2035, varying by segment. The framework further aims for electric and hybrid passenger vehicles to account for at least 25% of the domestic new passenger-car market, along with a goal to produce roughly 150,000 vehicles equipped with Level 4 automation or higher by the same year.
Manufacturing capacity exceeds current output levels
By 2025, passenger-car manufacturing capacity was close to 2.8 million units, although actual production reached approximately 700,000 cars. Light commercial vehicle capacity was around 300,000 units, with factories producing nearly 80,000. Truck capacity was approximately 130,000 units, and bus capacity stood at about 30,000. In that year, Russian factories also produced about 4,400 vehicles with electric powertrains, slightly above the 4,200 units produced in the previous year.
The government’s strategy emphasizes expanding the use of standardized components and technologies across vehicle platforms, setting benchmarks for localization and technological independence for domestically manufactured vehicles. The comprehensive plan covers passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous systems, and vehicle software. Its envisioned scenario combines an annual production of 2.8 million vehicles with an 80% share for the domestic market, and an action plan for implementation is required as part of the approval process.