MOSCOW / RankWire.AI / – Russia aims to boost its annual vehicle output to approximately 2.8 million units by the year 2035, according to its revamped automotive industry strategy. During a sector development meeting on Aug. 31, First Deputy Prime Minister Denis Manturov announced this target. The projection encompasses both domestic sales and exports. The plan also envisions achieving an 80% share of locally manufactured vehicles within Russia’s new-vehicle market by 2035.
The Russian government ratified the revised automotive strategy on Aug. 24, extending the industry framework through 2035. As of the end of 2025, Russia’s vehicle manufacturing capacity was around 3.3 million units annually. However, actual production that year was approximately 800,000 vehicles. During 2024 and 2025, capacity utilization averaged 25% for passenger cars and 41% for light commercial vehicles, with rates reaching 35% for trucks and 43% for buses.
Under the planned scenario, the 2035 production goal includes about 2.5 million passenger vehicles and roughly 170,000 light commercial units. Additionally, the target accounts for 110,000 trucks and 30,000 buses. The strategy allocates passenger-car manufacturing across four or five different vehicle platforms, whereas light commercial vehicles would utilize one or two. The total new-vehicle market in 2035 is projected to reach roughly 3.2 million units, with imports potentially covering up to 20% of that total.
Production ambitions encompass all vehicle categories
A secondary, more conservative scenario is also included within the strategy, proposing lower production figures and market size. Under this alternative, vehicle production by 2035 could reach approximately 1.69 million units annually, with the new-vehicle market estimated at about 2.2 million units for that year. The target scenario for 2030 envisions a market size of around 2.4 million units, whereas the conservative plan predicts roughly 2 million units across all vehicle segments in 2030.
Key technological and powertrain objectives also feature prominently in the updated framework. By 2035, internal-combustion engine vehicles are expected to comprise between 67% and 83% of production, depending on the vehicle type. Electric and hybrid passenger cars are projected to constitute at least 25% of the domestic new passenger-car market by that time. The plan also aims for the production of approximately 150,000 highly automated vehicles with Level 4 autonomy or higher by 2035. Digital vehicle systems and driver-assistance technologies are integral components of the strategy as well.
Manufacturing capacity and localization goals are prioritized
Russia’s current manufacturing capacity remains significantly higher than its recent annual output. In 2025, passenger-car capacity was about 2.8 million units, despite production falling to around 700,000. Light commercial vehicle capacity reached roughly 300,000 units, with actual production near 80,000. Truck capacity was approximately 130,000 units, and bus capacity was close to 30,000. The country also produced about 4,400 electric-powered vehicles in 2025, an increase from 4,200 in 2024.
The strategy emphasizes the broader adoption of standardized components and technological systems across vehicle platforms until 2035. It also sets more ambitious localization and independence targets for domestically manufactured vehicles. Covering passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous systems, and digital vehicle technologies, the framework combines the 2.8 million annual production goal with the objective of achieving 80% domestic market share. An action plan for implementation is mandated by the order approving the updated strategy.