Palio launch after monsoon

By Our Staff Correspondent

MUMBAI, AUG. 20. Fiat India (FIL) is likely to launch its hatchback - Palio - in the Indian market after the monsoon. The price of the Palio will be determined at a date closer to its launch but it will occupy the `top end' of the `B segment' of cars.

The earlier versions of the Palio have already been successful worldwide with almost two million cars sold in 40 countries. In fact, the Palio family of cars are produced in nine countries.

The Palio will be powered by a choice of multi-point fuel injected (MPFI) petrol engines - 1.2 litre 72 bhp `Fire' will be available in two versions - the base EL and ELX versions - and the 1.6 litre `Torque' engine delivering 100 bhp.

Mr. M. Bianchi, managing director, FIL, while speaking to the press here today, said, ``Today, 40-42 per cent of the market is constituted by A and B segment cars. With the launch of Palio, the customer will find all the features that one gets in a C segment car. But we are bringing all these solutions and the latest technology available - anti-skid brakes and air bags in a B segment car.''

FIL is targeting a sale of 50,000 Palios annually but ``it depends on volume, price and costs'' said Mr. Bianchi. Palio, it may be recalled, is part of Fiat's Project 178 for a world car platform, other models in the family being the Siena and the Siena Weekend.

Mr. Bianchi said the automobile market in India is ``not very good and is registering only a marginal increase. In future, it will definitely get better.

The D segment has been seeing maximum action in the Indian market but Fiat is not looking at this segment because we do not believe in bringing in CBUs (completely built units). We can bring in the Alfa Romeo but then we do not wish to get into this segment now and would rather focus on vehicles of the 178 platform.''

With the launch of the Palio, FIL hopes to re-engineer the 178 family in terms of quality, reliability, standard and solutions, according to Mr. Bianchi.

Further, he said the Ranjangaon facility would commence production only when there was adequate demand for FIL's vehicles.

The Kurla plant has a capacity of 60,000 vehicles per annum and production will shift to Ranjangaon when demand exceeds this figure. For the January-July period, FIL sold 6,000 vehicles including Uno, Siena and Weekend.

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Section  : Business
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