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As a first step
in Fiat's strategy to re-launch India as a regional hub, and
re-start flagging sales in the giant and economically fast growing
nation, Fiat India Ltd - the majority owned regional arm of Fiat Auto -
last week announced a sweeping price reduction for the Palio model
which amounts to a cut of around Rs 22,000 off the current
retail price.
This reduction will allow the Palio - Fiat's main player in
the key compact car segment India - to compete more closely
with its main rivals, the Maruti Swift, the GM Corsa Sail and
the Hyundai Getz. This price cut, effective immediately,
will mean that the firm's top flagship model - the Palio 1.2 ELX -
will now sell for Rs 4.15 lakh. The entry-level Palio model
- the 1.2 NV EL - will now cost Rs 3.64 lakh, making it around
Rs 30,000 cheaper than the equivalent starter models from
its three main competitors, while the 1.2 EL, with power
assisted steering added, will be priced in-between at Rs 3.94 lakh.
This new price war
has been forced by Maruti who aggressively priced their new
1.3-litre Swift model, with a price tag of Rs 3.87 lakh,
although they have subsequently raised this slightly to Rs 3.95 lakh.
Prior to this Hyundai started reducing the cost of its
entry-level models, and GM have also weighted in by rolling
out discount schemes for their compact Corsa Sail model.
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