This is an area where the Indica wins hands down, period. The Palio is the longer of the two at 3763mm (compared to the 3660mm long Indica) but the Indica’s slightly longer wheelbase - 2400mm against 2373mm - means that it has the space to play around a bit more. But that is not the entire story at all. Clever packaging by the IDeA Institute design team has allowed the ERC men to liberate more room than just what the 27mm could have permitted. The tallish stance of the seating position helps in endowing the Indica with ample leg room, knee room and elbow room while the Palio gets down to keeping in sync with its sporty Italian genes.

The Palio’s length gives it the advantage in the luggage space where the Indica is beaten comprehensively while this same extra length means that Fiat has been able to fit a larger fuel tank in the Palio.

Another major improvement in the Indica is in the air con system which has been suitably tweaked to not only operate at a new minimum temperature threshold compared to existing (Indian) standards but it also has better component optimisation. One cannot fault the Palio’s air con except for the fact that it could do with a better performing blower.

Indica cabin shows ever improving fit and finish and bests the Palio. The cheery ambience, clear instrumentation, logical switchgear (barring the large span stalks on the steering column) and a great driving position stand out as do the trendy door pads and the upholstery. The front seats can do with some more under-thigh support. Space at the rear is an Indica strong point thanks to the long wheel base. The Indica loses out in luggage space and the fitment of a smaller capacity fuel tand due to its shorter overall length.

The cabin of the Palio is a familiar one even though Fiat has made some changes. The tacky wood finish stickers on the dash are atrocious, not just in look but also in the way they are tacked on. Seating position though sporty enough for our staffers was always given the second best rating by all whom we asked. The Palio's doors do not swing open as much as those on the Indica, a trait appreciated by women and senior citizens.

An area where the Palio scores over the Indica is in the design and quality of its stalk switches mounted on the steering column. The hard plastic switches with their smallish rotary knobs to activate either the headlights or the wipers (on the Indica) seem rather cumbersome compared to the rotary type stalks on the Palio. And finally, getting to the sound deadening, the Indica can do with better sound insulation especially with regard to engine noise and also wind noise. While vibes have been pretty non-existent, the wind noise at high speed can yet be tempered down. The Palio has it all covered very well.