The compact urban hatchback will become Renault's second model - after the popular Logan - to be assembled in Russian capital.
Logan Project Director Patricio Neffa said Avtoframos would double its capacity in late 2009 to 160,000 cars annually.
"The plant now assembles 15 cars an hour, but will start making 30 [an hour] from 2010," he said, adding that investment would total $150 million.
The increase in production will add 1,200 new jobs to the current 1,870, said Neffa.
The Sandero has been assembled in Romania since June 2008, and went on sale in Europe this summer.
It is based on the Renault-Nissan platform that is the starting point for the Logan, and it is a similarly inexpensive small family car with a spacious interior.
The Sandero will be available with gasoline- and diesel-powered engines.
Renault sold 101,200 cars in Russia last year. The Logan is ranked among the country's most popular foreign cars.
