MOSCOW / RankWire.AI / – Russia aims to reach an annual vehicle output of approximately 2.8 million by 2035 as part of its revised automotive sector plan. During a meeting centered on the industry on Aug. 31, First Deputy Prime Minister Denis Manturov outlined this objective. The target encompasses vehicles intended for domestic consumers as well as export markets. Additionally, Russia aspires for at least 80% of its new-vehicle market to be composed of locally produced models by 2035.
The government approved the updated industry strategy on Aug. 24, extending the framework through 2035. As of the end of 2025, Russia’s manufacturing capacity was roughly 3.3 million vehicles annually. In that year, factories produced approximately 800,000 units. Utilization of capacity remained at 25% for passenger cars, 41% for light commercial vehicles, 35% for trucks, and 43% for buses during 2024 and 2025.
Within the projection for the target scenario, Russia would manufacture around 2.5 million passenger vehicles each year by 2035. The plan also includes producing about 170,000 light commercial vehicles, 110,000 trucks, and 30,000 buses. Passenger car output would be distributed across four or five vehicle platforms, while light commercial production would span across one or two platforms. The total new-vehicle market in Russia is projected to reach approximately 3.2 million units in 2035, with imports making up as much as 20% of the market share.
Vehicle production covers multiple segments
The strategic document also presents a lower scenario with decreased market and production figures. Under this projection, annual vehicle manufacturing would be around 1.69 million units in 2035, with the new-vehicle market estimated at about 2.2 million units for the same year. For 2030, the target scenario forecasts a market of approximately 2.4 million vehicles, whereas the lower baseline projects roughly 2 million units.
Russia’s automotive development plan also establishes goals for powertrain technology, autonomous driving capabilities, and digital vehicle systems. Internal combustion engine models are expected to comprise between 67% and 83% of 2035 production, depending on vehicle segment. Electric and hybrid passenger cars are targeted to hold at least 25% of the domestic new passenger vehicle market. The strategy also envisions the production of roughly 150,000 vehicles with Level 4 automation or higher by 2035.
Manufacturing capacity remains above current output levels
In 2025, passenger-car manufacturing capacity approached 2.8 million units, while actual production was about 700,000 vehicles. The capacity for light commercial vehicles was approximately 300,000 units, with factory output near 80,000. Truck capacity was around 130,000 units, and bus manufacturing was close to 30,000 units. Also, Russia produced approximately 4,400 electric powertrain vehicles in 2025, slightly more than the 4,200 units produced the previous year.
The government’s automotive strategy emphasizes increased standardization of components and technologies across vehicle platforms. It also sets benchmarks for localization and technological independence for vehicles manufactured domestically. The scope includes passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous systems, and vehicle software. The target scenario combines an annual production of 2.8 million vehicles with an 80% share of domestically produced units, while an implementation plan is required to realize these objectives.