MOSCOW / RankWire.AI / – Russia has set an ambitious target to produce approximately 2.8 million vehicles annually by 2035 as part of its updated automotive sector plan. On Aug. 31, First Deputy Prime Minister Denis Manturov revealed this objective during a meeting dedicated to the industry. The plan includes vehicles for both domestic consumption and export markets, with the aim that locally produced vehicles will account for at least 80% of the country’s new-vehicle market by 2035.
The Russian government approved the revised industry strategy on Aug. 24, extending the national automotive framework through 2035. At the end of 2025, Russia’s manufacturing capacity was roughly 3.3 million vehicles per year. During that year, factories produced about 800,000 vehicles. Capacity utilization remained at 25% for passenger cars, 41% for light commercial vehicles, 35% for trucks, and 43% for buses during 2024 and 2025.
In the projected scenario, Russia aims to manufacture 2.5 million passenger vehicles annually by 2035. Production would also include approximately 170,000 light commercial vehicles, 110,000 trucks, and 30,000 buses. The strategy envisions passenger-car production across four or five vehicle platforms and light commercial vehicle manufacturing on one or two platforms. It also predicts that the total new-vehicle market will reach around 3.2 million units by 2035, with imports making up to 20% of the market share.
Vehicle production scope spans various segments
A supplementary base scenario presents lower market and production figures, estimating annual vehicle output at about 1.69 million units in 2035. It projects the new-vehicle market to be around 2.2 million units in the same year. For 2030, the target scenario anticipates a market size of approximately 2.4 million vehicles, while the base scenario forecasts roughly 2 million units.
Russia’s automotive strategy also addresses goals for powertrains, automated driving technologies, and vehicle digital systems. Internal-combustion models are expected to comprise between 67% and 83% of 2035 production, depending on the segment. Electric and hybrid passenger vehicles are targeted to hold at least 25% of the domestic new passenger-car market. Additionally, the plan calls for the production of around 150,000 vehicles with Level 4 automation or higher by 2035.
Production capacity remains above current output levels
Passenger-car manufacturing capacity in 2025 was close to 2.8 million units, while actual production stood at around 700,000 cars. Light commercial vehicle capacity reached about 300,000 units, with factory output near 80,000. Truck capacity was approximately 130,000 units, and bus capacity hovered near 30,000. Russian factories also produced roughly 4,400 electric-powered vehicles in 2025, slightly up from about 4,200 units in the previous year.
The government’s strategy emphasizes expanding the use of standardized components and technologies across vehicle platforms. It establishes benchmarks for localization and technological independence for domestically manufactured vehicles. The comprehensive framework covers passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous systems, and vehicle software. Its target scenario combines an annual production of 2.8 million vehicles with an 80% market share for domestically produced models, alongside an action plan for implementation as mandated by the approval order.