The ongoing 2012 International Auto Show of São Paulo in Brazil has yielded a new low cost hatchback for the region. The Chevrolet Onix takes the fight to the popular Volkswagen Gol and new entry Hyundai HB20. Made in the land of samba, the Onix goes on sale next month.

Fully developed by General Motors do Brasil, the Onix is a five-door hatch sitting on GM’s Gamma II small car architecture, which also underpins the odd-looking Cobalt sedan and Spin MPV. The latter is a Toyota Avanza rival that will be made in Indonesia, so it might reach here someday – click here for our IIMS story.

The Onix comes with a choice of two four-cylinder, flex-fuel engines – a 1.0L with 78 hp on gasoline and 80 hp on ethanol, and 1.4L unit with 98 hp/106 hp. Brazilians can choose between a five-speed manual or six-speed automatic.

LS, LT and LTZ trim levels are available, each offering exclusive customisation via adhesives and appliques with Joy, Race, and 24 Hours themes. Bluetooth capability along with the Chevrolet’s MyLink system, a segment first, is displayed on a seven-inch colour LCD screen.

Prices start at US$14,800 for the 1.0 LS to US$20,700 for the 1.4 LTZ. Gallery after the jump.