Renault-Nissan and AvtoVAZ sold 878,990 cars in Russia last year, including 578,387 Ladas. With a market share of nearly 33 percent, Russia is the third-largest market for Renault-Nissan and AvtoVAZ after China and the United States.
AvtoVAZ aims to hold 25 percent of the market in five years, or 40 percent together with Renault and Nissan.
Renault-Nissan may gain control of the Togliatti plant within two years, with the alliance paying in stages as goals are met, Sergey Skvortsov, managing director of Troika Dialog, which has 21 percent of AvtoVAZ that it plans to sell, said in an interview in February.
At the end of last year, the factory started making a budget car, the Lada Granta, which is now on sale, to replace its biggest-selling brands, the Classica series and the Samara, next year.
In 2009, the state gave AvtoVAZ a 75 billion-ruble bailout loan to avoid social unrest in Togiatti as the company cut its workforce from 102,000 to 66,000 through accelerated retirement and spinning off subsidiaries. The city depends on the factory as its principal employer.
AvtoVAZ will probably generate a profit for this year following a loss in the first half, after the government phased out a rebate program, which had encouraged purchases of new domestically made cars to replace old models, Komarov said.
Bloomberg and Luca Ciferri contributed to this report