MOSCOW / RankWire.AI / – Russia has set an ambitious target to produce approximately 2.8 million vehicles annually by 2035, as part of its revamped automotive industry strategy. During a meeting focused on the sector on Aug. 31, First Deputy Prime Minister Denis Manturov outlined this goal. It encompasses vehicles intended for the domestic market and export purposes, with Russia aiming for locally produced vehicles to hold at least 80% of its new-vehicle sales by 2035.
The Russian government ratified the revised industry plan on Aug. 24, extending the national development framework through 2035. As of the end of 2025, Russia’s vehicle manufacturing capacity was about 3.3 million units per year. In that year, factories produced around 800,000 vehicles. Capacity utilization rates in 2024 and 2025 remained at 25% for passenger cars, 41% for light commercial vehicles, 35% for trucks, and 43% for buses.
Under the projected scenario, Russia is expected to manufacture 2.5 million passenger cars annually by 2035. The output will also include about 170,000 light commercial vehicles, 110,000 trucks, and 30,000 buses. The strategy envisions passenger-car production across four or five platforms, while light commercial vehicles will be built on one or two platforms. Additionally, it estimates the total new-vehicle market in Russia will reach approximately 3.2 million units in 2035, with imports making up to 20% of that total.
Vehicle manufacturing across multiple segments is included in the target
The document also features a conservative scenario with lower production and market figures. In this case, annual vehicle output is projected at about 1.69 million units for 2035, with the new-vehicle market estimated at roughly 2.2 million units in the same year. Looking ahead to 2030, the target scenario foresees a market of around 2.4 million vehicles, whereas the more conservative baseline predicts approximately 2 million units.
Russia’s automotive development plan also establishes objectives for powertrains, autonomous driving technologies, and digital vehicle systems. Internal-combustion engine models are expected to account for between 67% and 83% of production in 2035, depending on the segment. At least 25% of the domestic new passenger-car market is targeted to be electric or hybrid vehicles. The framework additionally aims to produce around 150,000 vehicles equipped with Level 4 automation or higher by 2035.
Manufacturing capacity remains above current production levels
Passenger-car manufacturing capacity reached nearly 2.8 million units in 2025, while actual production was about 700,000 cars. Light commercial vehicle capacity stood at roughly 300,000 units, with factory output close to 80,000. Truck capacity was approximately 130,000 units, and buses about 30,000. In 2025, Russian factories also produced approximately 4,400 electric powertrain-equipped vehicles, slightly above the 4,200 units manufactured in the previous year.
The strategy emphasizes broader adoption of standardized components and technologies across vehicle platforms. It sets benchmarks for localization and technological independence for domestically produced vehicles. The plan encompasses passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous systems, and vehicle software. Its target scenario envisions an annual output of 2.8 million vehicles with an 80% share for the domestic market, complemented by an implementation action plan mandated by the approval order.