Izh-2126 was the result of the “legalization” of the Izh-19 project – technical specifications were issued for the vehicle and an industry index was assigned to it. This model was under development for a very long time – from 1976 to 1990. During this time, the design and equipment features changed, but the concept of a five-door hatchback with a classic layout with rear axle drive remained unchanged.

The production version of the Izh-2126 is based on prototypes of the O4 series, but before the start of production, the plant was forced to significantly reduce the cost of the car – in the unscheduled O5 series, Bosch headlights gave way to headlights from the VAZ-2108, a steering wheel from the same model appeared, and the interior became simpler. The plant also had to abandon the 1.6-liter engine provided for in the technical specifications back in 1976.

The production of Izh-2126 formally began in 1990, but it was a sporadic production, since subcontractors did not supply components, and the required equipment was either missing or not installed. Until 1997 about 5 thousand copies of the Izh-2126 were assembled and sold. By the end of the 1990s, the new owners of the plant finally launched full-scale production of this model. Izh-2126 remained on the production line until 2005.