The Fiat Palio range is set widen as the hatchback become available with the 1.3 Multijet 16v engine for the first time with Fiat Automobiles India Ltd planning to launch the new version in March.

Fiat India Automobiles Ltd (FIAL) is set to launch a new variant of the Palio Stile on March 11, which will come with a 1.3-litre Multijet diesel engine.

“We expect the number of Palios to grow once we launch the diesel variant with the trademark Fiat engine,” said FIAL CEO Rajeev Kapoor to reporters after flagging off the Bravo and Fiat 500, which will accompany two Ferraris on the Magic India Discovery drive, starting from Mumbai on Monday.

The greenfield project at Ranjangaon, where FIAL — the JV between Fiat and Tata Motors — is located, will have a capacity to roll out 1.60 lakh passenger cars annually. The three Fiat models, Grande Punto, Linea and the Palio account for around 90,000 units a year while the X1 Sedan, Tata Motors’ Indigo sedan, account for the remaining 70,000 units.

The Palio is built at the plant which Fiat relocated from its Kurla location, while others will be built in the new plant, currently under construction. The second body shop where cars other than Palio 178 platform will be built is expected by June 2008. Company officials feel they can make other cars like the Siena and Adventure on the same 178 platform at this plant as they are manufacturing 600 Palios every month. Officials also claim there is a capacity to ramp up 2,000 cars monthly.

Transmission plant head Mauro Mollo said it will have the capacity to manufacture 2-lakh small diesel engines and 1-lakh petrol engines and will supply these engines to Fiat and Tata Motors besides looking at exports.

“We have begun run-off production of the small engines and full-scale engine production should begin in 2-3 months,” said Mr Mollo. Indications are that the 1.3-litre diesel engines on the first 50 Palio Stiles will be imported from Italy.

Report courtesy of The Economic Times