The chassis and suspension package of the Siena always came in for special praise and the Palio continues in the same vein.
  
The Palio utilises a strong monocoque structure that has high levels of torsional and flexional rigidity. The strong monocoque results in vibrations being isolated and minimal intrusion of suspension noise into the cabin. The strengthened monocoque with the programmed deformable zones helps in the event of a crash as do the impact resistant bars in the doors.
  
The car utilises an independent front suspension with MacPherson struts that are anchored to the chassis cross member through a transverse lower wishbone. Coil springs, dual effect shock absorbers and a stabiliser bar make up the suspension componentry upfront. The rear suspension comprises a torsion axle, coil springs, telescopic dual effect hydraulic dampers and an anti-roll bar.
  
The subframes and wishbones of the new Palio have been strengthened in an effort to improve stability. The front track has also been widened while the wheelbase has been increased by 30mm to add to the stability. To tackle Indian roads, the ground clearance has been increased by 30mm to 170mm (compared to the 140mm of the Siena).
  
Ride quality of both cars was good, the EL variants being a cut above. Running on 13-inch rims shod with high profile (80 profile) tyres, the car rides like no other small car and puts quite a few mid-sizers to shame. Frankly for a small car, her ride is unbelievable. The GTX shod with 14-inch alloys and low profile (65 profile) tyres gained slightly on the roadholding front but lost out on the ride quality, crashing audibly into ruts and potholes.
  
Roadholding of the cars was good and body roll has been kept within acceptable limits. However the increase in ground clearance has noticeably increased the centre of gravity that compromises the high speed stability to a slight extent. On the limit the Palio understeers in a safe but predictable manner as all front-wheel drives are engineered to do. However sudden directional changes at speed can upset the car's rhythm and one has to be ready to catch that wayward tail.