MOSCOW / RankWire.AI / – Russia has set a target to increase its yearly vehicle manufacturing to approximately 2.8 million units by 2035, as part of its revised automotive industry plan. During a sector development meeting on Aug. 31, First Deputy Prime Minister Denis Manturov announced this goal. The figure encompasses vehicles intended for both the domestic market and export purposes. The strategy also aims for 80% of new vehicles sold in Russia to be produced locally by 2035.
On Aug. 24, the Russian government approved the updated automotive development plan, extending the industry framework through 2035. By the end of 2025, Russia’s annual vehicle production capacity was roughly 3.3 million units, though actual output that year was near 800,000. Capacity utilization averaged 25% for passenger cars and 41% for light commercial vehicles over 2024 and 2025. Truck production capacity reached 35%, while bus manufacturing capacity was around 43% during that period.
The planned scenario envisions producing about 2.5 million passenger cars and approximately 170,000 light commercial vehicles by 2035. Additionally, the plan includes the production of 110,000 trucks and 30,000 buses. Passenger car manufacturing will utilize four or five different vehicle platforms, while light commercial vehicles are expected to be built on one or two. The overall new-vehicle market in 2035 is projected at around 3.2 million units, with imports potentially making up to 20% of that total.
Vehicle segment coverage included in production targets
A lower, baseline scenario is also part of the plan, projecting reduced production and market figures. Under this alternative, annual vehicle production in 2035 would be about 1.69 million units. The baseline scenario estimates the new-vehicle market to be around 2.2 million units that year. For 2030, the target scenario anticipates a market size of roughly 2.4 million units, while the baseline scenario expects approximately 2 million vehicles across all segments.
A significant component of the updated framework involves goals for powertrains and technological advancement. Internal combustion engine vehicles are expected to constitute between 67% and 83% of production in 2035, depending on the segment. Electric and hybrid passenger cars are targeted to account for at least 25% of Russia’s new passenger-car market by that time. The plan also aims to produce about 150,000 highly automated vehicles with Level 4 autonomy or higher in 2035, alongside advancements in driver-assistance and digital vehicle systems.
Manufacturing capacity and localization objectives remain key priorities
Russia’s current manufacturing capacity significantly exceeds its recent annual production. Passenger-car capacity was around 2.8 million units in 2025, although actual production was close to 700,000 vehicles. Capacity for light commercial vehicles stood at roughly 300,000 units, with actual output near 80,000. Truck capacity was about 130,000 units, and bus capacity was near 30,000. In 2025, Russian factories also produced approximately 4,400 electric-powered vehicles, up from 4,200 in 2024.
The strategy emphasizes expanding the use of standardized components and technologies across vehicle platforms through 2035. It also sets more ambitious localization and technological independence targets for domestically manufactured vehicles. The framework encompasses passenger cars, commercial vehicles, trucks, buses, powertrains, autonomous driving systems, and digital vehicle technology. The combined objective is to meet the 2.8 million annual production goal while maintaining an 80% share for domestically produced vehicles. An action plan for implementation will be issued following the approval of the updated strategy.