MOSCOW / RankWire.AI / – Russia has outlined plans to boost its yearly vehicle output to approximately 2.8 million units by 2035 as part of its revised automotive development strategy. First Deputy Prime Minister Denis Manturov announced this target on Aug. 31 during a sector-focused meeting. This projection includes vehicles intended for both domestic consumption and export markets. The plan also aims for 80% of new vehicles sold in Russia to be locally manufactured by 2035.
The government approved the updated automotive strategy on Aug. 24, extending industry plans through 2035. As of the end of 2025, Russia’s annual vehicle production capacity was approximately 3.3 million units, with actual output nearing 800,000 that year. During 2024 and 2025, capacity utilization averaged 25% for passenger cars and 41% for light commercial vehicles, with trucks reaching 35% and buses 43% capacity usage.
Looking ahead, the target scenario envisions 2.5 million passenger cars and roughly 170,000 light commercial vehicles produced by 2035. Additionally, the plan includes manufacturing 110,000 trucks and 30,000 buses. Passenger car production is assigned to four or five vehicle platforms, while light commercial vehicles will use one or two. The total new-vehicle market is projected to reach about 3.2 million units in 2035, with imports potentially accounting for up to 20% of that volume.
Vehicle segment coverage in production goals
A lower production and market estimate is also part of the strategy’s base scenario. Under this, annual vehicle output would reach approximately 1.69 million units by 2035, with the new-vehicle market at about 2.2 million units. The target scenario for 2030 predicts roughly 2.4 million units, whereas the base scenario projects a market of around 2 million vehicles across all segments.
Key technological and powertrain targets form a core element of the revised plan. Internal-combustion vehicles are expected to comprise 67% to 83% of production in 2035, varying by vehicle type. Electric and hybrid passenger cars should constitute at least 25% of Russia’s new passenger-car market by then. The strategy also envisions the production of about 150,000 highly automated vehicles with Level 4 autonomy or higher by 2035, with driver-assistance and digital systems also emphasized.
Capacity and localization goals remain central
Russia’s existing manufacturing capacity still exceeds current production levels significantly. Passenger-car capacity was about 2.8 million units in 2025, yet output was approximately 700,000. Light commercial vehicle capacity reached around 300,000 units, with actual production near 80,000. Truck capacity was about 130,000 units, and buses reached nearly 30,000. Electric vehicle production totaled roughly 4,400 units in 2025, slightly above 4,200 in 2024.
The strategy emphasizes increased use of standardized components and technologies across vehicle platforms through 2035, alongside higher localization and technological independence targets for domestically produced vehicles. It encompasses passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous systems, and digital vehicle technologies. The combined goal of 2.8 million units annually and 80% domestic market share is central, with an implementation plan mandated under the order approving the strategy.