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Daewoo's now disbanded Worthing Technical Centre in the UK conducted the initial research and platform engineering, with Daewoo's main Technical Center in Bupyong, Incheon, South Korea completing the majority of the later development programme. Daewoo engineers refined the chassis in Britain, on the proving ground at Motor Industry Research Association near Nuneaton, UK. Long-term testing covered nearly 2.2 million kilometers (1.4 million miles) with further testing outside South Korea on test sites in Arjeplog, Sweden; Granada and El Vendrell, Spain; Kapuskasing, Canada and Beijing, China. According to an April, 2003 GMDAT press release, Daewoo built 119 prototypes during the Kalos's design and development, crashing 31 for research and data-gathering purposes, and manufacturing 39 pilot production vehicles to verify standards and quality.

The body's sheet metal panel gaps were kept to 3 mm (0.1 in) and all but the roof panel were galvanized steel. 46% of the Kalos' underlying structural components were produced with high-strength steel, with tailor-welded blanks used in the production of the vehicle to put strength where needed while saving weight. The front suspension used MacPherson struts with offset coil springs and a stabilizer bar, while the rear featured a semi-independent torsion beam axle.

The body featured a drag coefficient of 0.35, with a frontal area of 2.16 m2 (23.3 sq ft) giving aerodynamic resistance of 00.74 m2 (8.0 sq ft). All Kalos iterations featured high H-point seating within a relatively narrow, short and high-roofed body that combined a long wheelbase with short front (81 cm/32 in) and rear (49 cm/19 in, hatchback) overhangs to maximize the outward visibility, interior space and maneuverability relative to the vehicle's footprint. Rear seat H-points are higher in all body types, giving the car theatre seating.

The Daewoo Kalos was introduced in 2002, based on a then-new Daewoo platform named T200, replacing the Daewoo Lanos (T100). Under development before Daewoo's bankruptcy, the Kalos was the company's first new model introduction following its subsequent takeover by General Motors. Manufacture of the Kalos began in early March, 2002, with pre-production prototypes shown at the Geneva Auto Show in April 2002. The nameplate Kalos derives from the Greek word καλός (kalós) for "beautiful" and "good".

Designed by Italdesign, the Kalos derives directly from the Kalos Dream concept vehicle first presented at the 2000 Paris Motor Show and subsequent developmental concepts at the 2001 Frankfurt Motor Show, 2002 Geneva Auto Show, and 2003 at the Geneva Show. During this three-year development period Daewoo was struggling financially, with the ultimate fate of the company and the concept vehicle remaining uncertain.

Two different T200 front-end styling designs were sold. When released in 2002, the T200 headlamps were detached from the horizontal amber turn signal strip, located directly below. This detached style, used primarily in South Korea and North America, was used in conjunction with a semi-elliptical grille. When sales in Europe began in 2003, the headlights were an integrated unit that slanted upwards from the "V-shaped" grille towards the front fenders. In Australia, when the Daewoo Kalos was introduced in 2003, the hatchback featured the integrated lighting arrangement, with the detached style used to differentiate the sedans. In South Korea, where the detached lights were used at first, the integrated design was later utilized as a facelift.

The T200 sedan and five-door hatchback featured a swage line running along the lower body to the rear door, which kinks downward prominently on the five-door. Five-doors also feature a side window in the C/D pillar with a distinctively angled lower edge. Interiors feature a circular motif throughout. Upon introduction the initial European models carried an emblem reading "Design Giugiaro." Referring to his firm's design of the Kalos, Giorgetto Giugiaro said: "When we designed it, we set out to produce an alternative to conventional lines and tread new paths in terms of design."

The Kalos was sold in three available body styles: a 4-door sedan and 5-door hatchback from the beginning of production in 2002, and a 3-door hatchback available in certain European markets beginning in 2005. All body styles meet North American subcompact and European supermini or B-segment size classifications. The interior volume was 102.7 L (3.63 cu ft) (5-door) and 107.4 L (3.79 cu ft) (sedan) according to the EPA, meeting the minimum criterion for a compact vehicle despite being marketed as a sub-compact. Headroom was unmatched in its class at the time of its introduction. Per the German Verband der Automobilindustrie (VDA) standard, 5-door hatchbacks featured 175 litres (6.2 cu ft) of cargo space with the rear seats in their upright positions and 735 litres (26.0 cu ft) with the rear seats folded down, with a maximum payload rating of 495 kg (1,091 lb). Per U.S. Environmental Protection Agency (EPA) ratings, the 5-door hatchbacks featured cargo volume of 11.7 cubic feet (330 L) (rear seats up) to 42 cu ft (1,200 L) (rear seats down), with 7.1 cu ft (200 L) available in the sedan.

The first generation of Chevrolet Aveo began with launching Model T200, a subcompact automobile which has manufactured and marketed since 2002 by GM Daewoo, the South Korean subsidiary of General Motors. The model was marketed prominently under the nameplate Aveo. The model received the T200 internal codes, used first by Daewoo, and then, by GM Daewoo during the car's development. The T250 code was designated for the facelifted models.

Chevrolet Aveo T250 (sedan)

Designed, engineered and originally marketed by GM Daewoo, the Aveo succeeded the Daewoo Lanos and was marketed worldwide in 120 countries under five brands: Chevrolet, Daewoo, Holden, Pontiac, and Suzuki, being originally called Daewoo Kalos in its home country market South Korea, before being rebranded Daewoo Gentra. In other markets, the first generation model was marketed as the Holden Barina in Australia and Asia, Pontiac G3 in the United States and later Canada, previously in Canada as the Pontiac Wave and currently in Canada as the Suzuki Swift⁺. The successor of T200, the Chevrolet Aveo T300 will be released in 2011.