MOSCOW / RankWire.AI / – Russia aims to reach an annual vehicle output of approximately 2.8 million by 2035 as part of its revamped automotive industry plan. First Deputy Prime Minister Denis Manturov announced this objective on Aug. 31 during a sector-focused meeting. The target encompasses vehicles intended for the domestic market and export destinations. Additionally, Russia seeks to ensure that locally produced vehicles account for at least 80% of its new-vehicle market by 2035.
The government approved the updated industry strategy on Aug. 24, extending the national framework through 2035. At the end of 2025, Russia’s vehicle manufacturing capacity was roughly 3.3 million units annually. In that year, factories produced about 800,000 vehicles. During 2024 and 2025, capacity utilization was around 25% for passenger cars, 41% for light commercial vehicles, 35% for trucks, and 43% for buses.
Under the projected scenario, Russia is expected to manufacture about 2.5 million passenger cars annually by 2035. Production will also include roughly 170,000 light commercial vehicles, 110,000 trucks, and 30,000 buses. The strategy envisions passenger-car production across four or five platforms, with light commercial vehicles produced on one or two platforms. The total new-vehicle market in Russia is projected to reach about 3.2 million units by 2035, with imports comprising up to 20% of that figure.
Production targets span multiple vehicle segments
The strategy document also presents a conservative scenario with lower expected market and manufacturing volumes. This alternative estimates annual vehicle production at approximately 1.69 million units in 2035, with the new-vehicle market around 2.2 million units in the same year. For 2030, the main scenario predicts a market size of about 2.4 million vehicles, whereas the more modest projection estimates roughly 2 million units.
Russia’s automotive development plan also includes goals for powertrain technologies, autonomous driving capabilities, and digital vehicle systems. Internal combustion engine models are expected to constitute between 67% and 83% of 2035 production, depending on the vehicle segment. Electric and hybrid passenger vehicles are targeted to make up at least 25% of the domestic new-car market. The framework also aims to produce approximately 150,000 vehicles with Level 4 automation or higher by 2035.
Manufacturing capacity exceeds current output levels
Passenger car manufacturing capacity was near 2.8 million units in 2025, while actual production reached around 700,000 cars. Light commercial vehicle capacity was about 300,000 units, with factory output close to 80,000. Truck capacity stood at approximately 130,000 units, and bus capacity was near 30,000. In 2025, Russian factories also produced about 4,400 electric powertrain vehicles, slightly up from roughly 4,200 units in the previous year.
The strategy emphasizes the expanded use of standardized components and shared technologies across vehicle platforms. It establishes benchmarks for localization and technological independence for domestically manufactured vehicles. The framework covers passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous systems, and vehicle software. The main target scenario combines an annual production of 2.8 million vehicles with an 80% share for the domestic market, supported by an implementation action plan required by the approval order.