While the spotlight may be focused on China, these days, automakers like General Motors know there’s another emerging market that is one of the industry’s prime battlegrounds.
And for General Motors, once the market leader in Brazil, increasing competition means some new products are desperately needed – like the Opel Onix making its debut at the Sao Paulo auto show.
A close cousin to Chevrolet’s new Sonic subcompact, the 5-door Onix will target one of the fastest-growing segments in what is now the world’s third-largest national automotive market, after the U.S. and China.
“Onix is arriving at a unique moment for Chevrolet in Brazil, a country that is open for business and poised for growth,” said GM Chairman and CEO Dan Akerson during a preview of the new Opel Onix the night before the official opening of the annual auto show.
GM has had a presence in the Brazilian market for decades but its one-time lead has slipped due to dramatic changes in the Brazilian industry – and the country’s overall economy. The Portugese-speaking nation has one of the world’s fastest-growing middle classes, a result reflecting a liberal shift in traditionally restrictive economic policies made over the last decade.
The auto industry has been a prime beneficiary, sales growing only a bit slower than in booming China. That has encouraged plenty of competition, however, notably from Asian manufacturers. Nissan, for one, is introducing the Extrem, an edgy crossover concept, at the Sao Paulo auto show. It is expected to reappear in production trim when the Japanese maker’s new assembly plant, near Rio, opens late next year.
Korean makers like Hyundai have also ramped up their presence in the market, and so have the Chinese – who have flooded Brazil with low-cost products targeting the huge entry segment known as Popular Cars.
With the Opel Onix, GM hopes to take on such key competitors as Hyundai’s new HB20 as well as the Gol, a critical offering from Brazilian powerhouse Volkswagen. GM has invested $5 billion since 2008 in plants and product to help rebuild its position in the country.
The 2013 Opel Onix hatchback rides on GM’s global Gamma II platform, shared with such current Brazilian offerings as the Cobalt sedan and Spin crossover – or MPV to Brazilians. From an American perspective it is closely related to both the new Chevrolet Sonic and Buick Encore.
Onix will be offered with both a 1.0-liter inline-four and a larger1.4-liter engine – both able to run on sugar cane-derived alcohol as well as gasoline, a common practice in Brazil which has used locally produced ethanol to help reduce dependence upon imported oil. The 1.4-liter engine will be paired with a new 6-speed automatic, a first in that segment. Also new, the hatchback will get the new Chevy MyLink infotainment system.
The base Opel Onix will debut at 29,990 Rials, or US$14,800.