The Ministry of Industry and Trade has outlined a strategic framework aimed at advancing Russia’s automotive sector through 2035. In line with President Vladimir Putin’s July directive, the plan seeks to secure technological leadership within the industry while expanding domestic capabilities and international competitiveness, as reported by Kommersant. The cornerstone of the strategy is to submit a detailed special measures plan to the government by December 15, 2022.
Key objectives emphasize delivering primarily for the Russian market with a high degree of localization and strengthening the global position of Russian-made vehicles. The explanatory note estimates that achieving these aims will require a substantial investment, projected at 2.7 trillion rubles.
Three market scenarios are anticipated for the automotive sector through 2035: fundamental, optimistic, and pessimistic. In the base scenario, the market is expected to reach about 0.8 million vehicles in 2022, followed by a gradual recovery to roughly 1.6–1.7 million units by 2026. The pessimistic scenario contemplates a market size around 1.3 million vehicles, while the optimistic projection envisions a steady rise to 2.8–3 million vehicles by 2030–2032.
Technical tasks identified include the domestic production of small diesel engines, Anti-lock Braking Systems (ABS), automatic transmissions, airbags, and Electronic Stability Programs (ESP). These benchmarks underscore a push toward upgraded safety features and local manufacturing capability.
Earlier drafts of the automotive strategy suggested that Russian-made products were not yet competitive on the global stage. Since then, the ministry has highlighted demands within the domestic market as well as the broader supply chain challenges that have affected the industry.
In a later update, the Ministry of Industry and Trade acknowledged a significant pullback in domestic demand for automobiles in Russia during the first half of the year, along with disruptions in production caused by the exit of some foreign manufacturers and persistent difficulties in securing key components and materials. The document appeared on the federal portal of regulatory legal acts, illustrating the government’s intent to address these pressures through targeted policy and investment.
Specifically, the draft notes that 2022 brought a range of new obstacles for the Russian automotive sector, including a steep decline in domestic consumption, plant shutdowns or suspensions, and supply chain hurdles. These factors are described as central challenges requiring coordinated action across industry, finance, and government to stabilize output and support a path toward greater localization and resilience.