MOSCOW / RankWire.AI / – Russia has outlined plans to increase its yearly vehicle production to approximately 2.8 million units by the year 2035 as part of its revamped automotive industry strategy. First Deputy Prime Minister Denis Manturov revealed this target on Aug. 31 during a sector development meeting. The projected figure encompasses both vehicles intended for the domestic market and exports. Additionally, the plan aims for 80% of new vehicles in Russia to be locally assembled by 2035.
On Aug. 24, the Russian government approved the revised automotive strategy, extending the industry framework through 2035. As of the end of 2025, Russia’s vehicle production capacity stood at roughly 3.3 million units annually. In that year, actual production was close to 800,000 vehicles. During 2024 and 2025, capacity utilization averaged 25% for passenger cars and 41% for light commercial vehicles. Trucks reached a utilization rate of 35%, while buses were at 43%.
The scenario for 2035 envisions manufacturing around 2.5 million passenger cars, utilizing four or five vehicle platforms, and approximately 170,000 light commercial vehicles, with trucks numbering about 110,000 and buses around 30,000. The plan also specifies that the passenger-car segment will be produced on four to five different vehicle platforms, while light commercial vehicles will be built on one or two. The total new-vehicle market is projected to be about 3.2 million units, with imports potentially making up as much as 20% of this total.
Production ambitions across all vehicle categories
The strategy includes a conservative scenario with lower production and market figures. Under this alternative, vehicle production in 2035 would be roughly 1.69 million units, and the new-vehicle market would amount to about 2.2 million units. The primary scenario projects a market size of approximately 2.4 million units by 2030, whereas the conservative scenario estimates around 2 million units across all segments for 2030.
Significant emphasis is placed on powertrain and technology targets within the updated framework. Internal-combustion vehicles are expected to constitute between 67% and 83% of production in 2035, depending on the vehicle type. By then, electric and hybrid passenger cars are forecasted to comprise at least 25% of Russia’s new passenger-car market. Furthermore, the strategy aims to produce about 150,000 highly automated vehicles with Level 4 autonomy or higher by 2035. The document also highlights developments in driver-assistance and digital vehicle systems.
Focus on capacity utilization and localization goals
Russia’s current manufacturing capacities significantly surpass its recent annual production levels. In 2025, passenger-car capacity was around 2.8 million units, with actual production close to 700,000. Light commercial vehicle capacity reached about 300,000 units, compared to a production of nearly 80,000. Truck capacity totaled approximately 130,000 units, while bus capacity was near 30,000. The country also produced around 4,400 electric powertrain vehicles in 2025, up from 4,200 in 2024.
The updated strategy emphasizes the increased use of standardized components and technologies across vehicle platforms through 2035. It also sets more ambitious targets for localization and technological independence for domestically manufactured vehicles. The comprehensive framework covers passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous driving systems, and digital vehicle technologies. Its target scenario combines the 2.8 million annual production goal with the objective of 80% market share for domestic vehicles. An action plan for implementation is required under the order approving the new strategy.