It was mechanically related to the Hyundai Elantra (XD) and was designed by the Italian company Pininfarina.

Sales commenced in August 2001, and continued until the end of 2010, when it was replaced by the ix20.

In Malaysia, the Lavita was locally assembled as the Inokom Matrix, which is available in both 1.6L and 1.8L petrol engine options.

For 2008, Hyundai unveiled a second facelifted version at the Geneva Motor Show in March 2008.

It underwent major changes to the front fascia, similar in style to the first generation i30.