A compact car from Italian car maker Fiat Auto, Palio’s sales are suffering  as production has been halved at the company’s sole manufacturing facility in Ranjangaon, Maharashtra. 

Fiat India Automobiles (FIAPL) is an industrial joint venture of 50-50 between Fiat Group Automobiles and Tata Motors and has made the Palio Stile, Fiat’s oldest hatchback in the country, and is sold for just Rs 3.45 lakh (ex-showroom, Mumbai). 

The Society of Indian Automobile Manufacturers (Siam), the apex automobile body in the country, data shows production of the Palio was 667 units during January-April, in comparison with the last years corresponding period 1,452 units. 

Ravi Bhatia, vice-president, (commercial), FIAPL said that, “production was hurt because of the paint shop. We now have our own paint shop and hopefully the production will be restored to its original level”. 

In the previous financial year, Palio, being the lowest-priced car in the Fiat stable, is the largest selling car with more than 43 per cent of total sales. In the domestic market last fiscal the Italian car company sold 8,087 units. 

Even though the company gave a face-lift in March 2008 to the Palio, and despite of having both petrol and diesel engine option, the Palio has failed to create much impact in the compact car segment. Strong competition from other car makers in the same segment like Maruti Suzuki, General Motors, Hyundai Motors and SkodaAuto has dented the target market, say experts.

Last fiscal year, around 3500 Fiat Palios were sold. Same amount of Maruti’s Wagon R and Hyundai’s Santro units are sold in a month.

Best Selling Fiat Car Models in India:
Fiat Palio 1.1 SL Stile (Petrol)
Fiat Palio 1.1 SLE Stile (Petrol)
Fiat Palio Stile 1.1 SLX (Petrol)
Fiat Palio Stile 1.6 Stile Sport (Petrol)
Fiat 500 Lounge (Diesel)
Fiat 500 Sport (Diesel)
Fiat Linea Active 1.4 (Petrol)
Fiat Linea Dynamic Pk 1.4 (Petrol)
Fiat Linea Active 1.3 (Diesel)

Related News:
New Fiat Bravo MSN Edition - medium-sized family car
Chrysler brands probable to hit Indian roads through Fiat
Fiat India launches Grande Punto at Rs 3.99- 6.11 lakh
Fiat deferred launch of Bravo

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Posted by Naresh Koshti on 27 June, 2009 11:18:23 AM IST #