Wonder why small cars sell in droves in India? Number one - because of their low initial purchase price and number two? Because they are lighter on fuel. If the Palio is going to be judged by just the second yardstick, not many Palios will fly out of the showrooms.
  
First off the Palio 1.2 delivered 15km to a litre of unleaded on the highway run, while on the city run with the air-con running, returned 8.0kmpl. The overall mileage that we obtained during the course of the test was 9.7kmpl. The Palio 1.6 delivered a slightly better highway mileage of 16kmpl that fell to 7.9kmpl on the city run. The overall mileage was again a disappointing 10kmpl.
  
The high kerb weight definitely increases the drinking habits of the car but still for a car bought on a budget, this is going to be a big minus against it. It will be a good idea for Fiat to look into factory fitted CNG or LPG kits that will make the Palio a reasonable long term running proposition.