The Palio 1.2 derives power from the 1242cc engine that has done duty in the Siena75 since day one. The unit develops 71bhp at 6000rpm and a max twist of 102Nm at 3250rpm. Though the power rating is mighty impressive for a hatch, the high kerb weight of 1015kg messes up the power to weight figures and consequently spoils the party.
  
The Palio 1.6 derives power from the 1596cc 'torque' engine that first saw light of day in the Siena Weekend and more recently in the Siena 1.6. The Palio however runs the Step A version of the engine that uses a 32-bit ECU instead of the 16-bit unit. Bore and stroke dimensions have been revised to give her a 20cc increase in displacement. The unit now develops 98.6bhp at 5500rpm, a rise of 2bhp and a max twist of 137Nm at 4000rpm. Fabulous figures and unheard of for a hatch.
  
Both these units are well matched to the transmission that sees the engine spinning away in the meaty part of the torque band more often than not. Spirited overtaking on the highway necessitates a downshift to fourth on the 1.2 but on the 1.6 there is seldom reason to shift gears. Flexing the right foot in fifth gear provides strong enough doses of firepower to effect quick overtaking manoeuvres.
  
The transmission of the 1.2 wasn't as slick as on the initial Siena that we tested years ago. The clutches of both cars have been beefed up with the 1.2 sporting a 190mm clutch plate while the 1.6 gets a beefier 200mm clutch plate. Shift quality is still acceptable but not in the league of the super-slick box in the Zen or the Santro. The gearshift of the 1.6 was good, far better than the Siena 1.6 that we have tested elsewhere in this issue but still not up there with the slick shifting Japanese boxes.