MOSCOW / RankWire.AI / – Russia has set an ambitious goal to manufacture approximately 2.8 million vehicles per year by 2035 as part of its updated automotive industry strategy. On Aug. 31, First Deputy Prime Minister Denis Manturov announced this target during a sector-focused meeting. The plan encompasses both vehicles intended for the domestic market and export purposes. Additionally, Russia aspires for locally produced vehicles to account for at least 80% of its new-vehicle sales by 2035.
The government approved this revised industrial approach on Aug. 24, extending the national framework until 2035. At the end of 2025, Russia’s vehicle manufacturing capacity was estimated at around 3.3 million units annually, with factories producing roughly 800,000 vehicles that year. Capacity utilization was 25% for passenger cars, 41% for light commercial vehicles, 35% for trucks, and 43% for buses during 2024 and 2025.
According to the strategic scenario, Russia would produce 2.5 million passenger vehicles annually by 2035. The plan also includes manufacturing about 170,000 light commercial vehicles, 110,000 trucks, and 30,000 buses. Passenger-car output is planned across four or five vehicle platforms, while light commercial vehicle production would span one or two platforms. The strategy projects the total new-vehicle market in Russia to reach roughly 3.2 million units by 2035, with imports making up to 20% of the market share.
The vehicle production target spans multiple segments
The document also includes a conservative baseline scenario with lower market and production figures. Under this projection, annual vehicle output would be approximately 1.69 million units by 2035, with the new-vehicle market estimated at about 2.2 million units in the same year. For 2030, the target scenario anticipates a market size of around 2.4 million vehicles, whereas the baseline estimates about 2 million units.
The automotive strategy emphasizes targets for powertrain technology, automated driving, and digital systems. Models powered by internal combustion engines are expected to constitute between 67% and 83% of 2035 production, depending on the segment. Electric and hybrid passenger cars are projected to hold at least 25% of the domestic market. The plan also envisions the production of approximately 150,000 vehicles equipped with Level 4 automation or higher by 2035.
Production capacity remains above current output levels
In 2025, passenger-car manufacturing capacity was nearly 2.8 million units, while actual production was about 700,000 vehicles. Light commercial vehicle capacity was roughly 300,000 units, with around 80,000 produced that year. Truck capacity reached approximately 130,000 units, and buses were produced at a rate close to 30,000. Additionally, electric powertrain vehicles totaled about 4,400 units in 2025, slightly higher than the 4,200 units produced in the previous year.
The government’s automotive strategy also advocates for increased standardization of components and technologies across vehicle platforms. It establishes benchmarks for localization and technological self-sufficiency for vehicles manufactured domestically. The comprehensive framework includes passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous systems, and vehicle software. The target scenario combines an annual output of 2.8 million vehicles with an 80% domestic market share, supported by an implementation action plan mandated by the approval order.