Two models of vehicles on a Renault platform, able to accommodate five and seven people, will be produced under the Lada brand.
The car manufacturing giant Renault-Nissan bought a blocking stake of 25% plus one share in AvtoVAZ for $1 billion in late February.
The Russian car manufacturer also plans to design a new low-cost car and an off-road.
AvtoVAZ, based in Togliatti in the Volga Region, and known internationally for its Lada brand, sold a record 663,500 cars in 2007, raising its net profit 57.3% year-on-year to 3.95 billion rubles ($166 million). The company plans to roll out 1.5 million cars annually by 2015.