MOSCOW / RankWire.AI / – Russia plans to reach a production level of approximately 2.8 million vehicles annually by 2035 as part of its updated automotive industry strategy. First Deputy Prime Minister Denis Manturov announced this target on Aug. 31 during a sector-focused meeting. The objective encompasses vehicles for both domestic consumption and export markets, with Russia aiming for locally produced vehicles to make up at least 80% of its new-vehicle market by 2035.
On Aug. 24, the Russian government approved the revised industry strategy, extending the country’s comprehensive plan through 2035. As of the end of 2025, Russia’s annual vehicle manufacturing capacity was roughly 3.3 million units, while factories produced about 800,000 vehicles that year. Capacity utilization remained at 25% for passenger cars, 41% for light commercial vehicles, 35% for trucks, and 43% for buses during 2024 and 2025.
The projected scenario envisions Russia manufacturing 2.5 million passenger cars annually by 2035, along with about 170,000 light commercial vehicles, 110,000 trucks, and 30,000 buses. Passenger-car production is planned across four or five vehicle platforms, while light commercial vehicles will be built on one or two platforms. The strategy also sets the total new-vehicle market at approximately 3.2 million units in 2035, with imports constituting up to 20% of the market share.
Vehicle production spans multiple segments
Additionally, the document offers a baseline scenario with reduced market and production figures, projecting about 1.69 million vehicles to be produced annually in 2035. It estimates the total new-vehicle market at around 2.2 million units in that year, while the 2030 target scenario foresees a market of roughly 2.4 million vehicles. Conversely, the baseline scenario predicts about 2 million units for 2030.
Russia’s automotive strategy also establishes targets for powertrain technology, autonomous driving, and digital vehicle features. Internal-combustion models are expected to account for between 67% and 83% of 2035 production, depending on the vehicle segment. The plan aims for electric and hybrid passenger vehicles to comprise at least 25% of the domestic new passenger-car market and envisions around 150,000 vehicles with Level 4 automation or higher by 2035.
Manufacturing capacity surpasses current output
In 2025, passenger-car manufacturing capacity was close to 2.8 million units, yet actual production was roughly 700,000 cars. Light commercial vehicle capacity was about 300,000 units, with factory output nearing 80,000. Truck capacity reached around 130,000 units, and bus capacity was near 30,000. Russian factories also produced approximately 4,400 electric powertrain vehicles in 2025, slightly above the 4,200 units produced in the previous year.
The strategy further emphasizes expanding the use of standardized components and technologies across different vehicle platforms. It sets benchmarks for localization and technological independence for domestically manufactured vehicles, covering passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous systems, and vehicle software. The plan combines an annual production goal of 2.8 million vehicles with an 80% share for domestic market sales, requiring the development of an implementation action plan according to the approval order.