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The existing version of the Fiat Palio,
dubbed the Palio Stile, was launched in
India in April 2007, with an additional and
highly efficient turbodiesel engine, the 1.3
Multijet 16v. The four-seater hatchback was
first launched in India in September 2001. |
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Fiat India Automobiles is set to facelift
the Palio Stile hatchback for the Indian
market bringing the styling of the
entry-level model into line with the
Brazilian built version (above). |
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Fiat
India Automobiles (FIAL) is set to facelift the
Palio Stile hatchback for the Indian market
bringing the styling of the entry-level model
into line with the Brazilian built version and
therefore ruling out any talk of phasing out the
entry-level model which has seen its sales
tailing off recently after more than eight years
of local production. The restyled version will
be launched onto the Indian market within the
next three to four months and it will carry a
"competitive price tag" according to an FIAL
executive.
In addition, the
petrol engines — 1.1 litre, 57 bhp and the 1.6 litre, 100
bhp seen in the existing Palio — may either get upgraded to
suit Bharat Stage IV (BS-IV) emission norms or may get
replaced by engines that power another Fiat model, the
recently-launched Grande Punto. The Grande Punto is driven
by a 1.2 litre (FIRE) engine that develops 68 bhp, as well
as a 1.4 litre (FIRE) engine that generates 90 bhp. The 1.3
litre Multijet diesel engine seen in the Palio is already
BS-IV compliant and does not require upgrading. Eleven
cities in India will change to BS-IV norms from April 2010
as part of global emission control action aimed at
containing harmful gases released by automobiles.
“Although the
Palio has become an old model now, it continues to serve our
strategic purpose of being the entry level model in our
range, while complementing the Punto. It was, hence,
essential to infuse some refreshments to the model to keep
it under production,” said a senior executive from the
company.
Though the
company preferred to maintain secrecy about the product
until its launch, sources say the new Palio may get a new
grille and a new dashboard assembly, much on the lines of
the recently launched and facelifted Brazilian Palio. Fiat
India will thus generate a major marketing push to reignite
the demand for the Palio, which has considerably slowed due
to fierce competition. Despite the price of the current
Palio, considered aggressive, it fails to pull customers
looking for other hatchbacks such as Hyundai i10, Maruti
Suzuki A-Star and Chevrolet Spark, in a similar price band.
Sales of the current Palio are pegged at 250-300 units a
month. In contrast, the Hyundai i10 clocks more than 5,000
units a month, according to industry officials.
Auto experts say
a facelift by the company was expected. “A complete
phase-out of the Palio will result in a huge void in Fiat’s
model line-up in India, which will be difficult to afford,”
said an expert. The existing version of the Palio was
launched by the company in April 2007, with an additional
and highly efficient diesel engine. The four-seater
hatchback was first launched in September 2001. Though
initial sales were encouraging, it lost in succeeding years
to intense competition, Fiat’s infamous service back-up and
also due to car’s fuel guzzling nature.
Meanwhile, Fiat
India is considering an upward revision of prices for the
Punto and Linea after the end of the current quarter. The
increase will be made to even out the rise seen in
international metal prices and the impact of the euro, which
has become costlier for its suppliers.
Report
courtesy of Business Standard
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