Strategic Investment Plan for Russia’s Automotive Sector: Targets for R&D, Localisation, and Infrastructure
The proposed strategy envisions substantial public and private commitments to modernize Russia’s automotive supply chain. It calls for a total allocation of 2.7 trillion rubles aimed at research and development and the creation of domestic components for vehicles. This plan emphasizes boosting exports of vehicle products and coordinating public investment to support both the export drive and domestic demand. A portion in the vicinity of 500 to 600 billion rubles is earmarked to stimulate overseas sales and another equivalent amount is directed toward stimulating demand for Russian cars and supporting the fleet renewal program inside the country. The overarching goal is to strengthen the entire sector from end to end, aligning production with international standards and improving competitiveness in global markets (Source: Strategy Document, 2024).
The Ministry of Industry and Trade outlines a roadmap to establish in-country production of critical engine and chassis systems. The objective is to bring the manufacture of internal combustion engines, automatic gearboxes, ABS, airbags, and other essential automotive components under national control by 2035. This plan stresses the importance of deep localization, aiming to reduce reliance on external suppliers while building a resilient domestic ecosystem capable of supporting both legacy and next generation vehicles (Source: Ministry’s Outline, 2024).
Forecasts within the base scenario suggest a steady expansion of vehicle sales. In 2022 the market is projected to register around 800 thousand units, with growth to about 1.6 to 1.7 million units by 2026, and reaching approximately 1.9 million units by 2035. These projections reflect expectations of stronger demand, improved product lines, and a more robust distribution network. The trajectory shows the sector moving from stabilization to noticeable scale as localization and new production capacities take hold (Source: Market Projections, 2024).
Strategic priorities include securing technological sovereignty for the Russian automotive industry, delivering products with a high level of domestically produced content, and accelerating the shift to future-friendly mobility. The plan envisions a broad range of propulsion options, including electric and hybrid vehicles, and explores hydrogen fuel cell technologies and autonomous driving capabilities. By focusing on innovation, the strategy seeks to position Russian carmakers as competitive players in emerging mobility ecosystems while supporting local jobs and industrial capacity.
Infrastructure development is also central to the plan. By 2030 the country should see the establishment of a comprehensive charging network, featuring around 8.6 thousand slow charging points, about 5.7 thousand fast charging stations, and a network of 200 hydrogen filling stations to support a diversified energy mix for transport. This infrastructure backbone is intended to enable a smoother transition to electrified and alternative-fuel vehicles, reduce total cost of ownership for consumers, and attract investment in new vehicle technologies (Source: Infrastructure Strategy, 2025).
A visual reference accompanies this summary: Depositphotos