Daewoo needed an entry-level vehicle, and it needed it fast, so it turned its eyes to Suzuki, which sold them the rights for the third generation of the Alto.
The Alto was designed by Suzuki for the kei-car segment and built it only with 0.66-liter engines for the Japanese market. For Daewoo, which didn’t know how to design a car from scratch, it was the best solution. The Korean carmaker needed a cheap vehicle to sell it on the emerging markets, especially on the Eastern European continent, in former communist countries. Strangely, the car was highly successful in South America and especially in Peru.

From the outside, the Tico looked slightly different than the Alto, with the main difference on the smaller headlights. Its front panel featured a slim opening to cool the engine. The wrap-around front plastic bumper sported the turn signals, while the stationary lights were included in the headlamps. Depending on the trim level, the Tico featured rubber strips on the sides to avoid scratches in the parking lot, especially with the shopping carts. Daewoo had the ridiculous idea to install a wing in the middle of the tailgate. It served more as a coffee table for cab-drivers.

Inside, the car was quite spacious for four adults, as neither one exceeded the average European height. Its trunk was big enough to fit a lunchbox and an XXL coffee mug. For the dashboard, Daewoo used the same part as the Alto, with a low-mounted panel and a small, rectangular instrument cluster placed in front of the driver.

The engine was developed together by Daewoo and Suzuki. It was an inline-three, 0.8-liter unit that could provide a mere 48 hp, which were enough for the 680 kg (1500 lbs) vehicle.