For too long the small car segment lay dormant devoid of fresh faces to generate excitement. Well, all that's changed for the better now that the Fiat Palio is finally out. Sirish Chandran reports on the Palio 1.2 and 1.6, the most important cars to date for Fiat Auto and one that will, could or should, set markets afire.
 
The world car for India has finally arrived. After much dithering and stalling during which other larger variants on the Project 178 platform were launched, the inevitable has happened and the most relevant car at least in the Indian context has broken cover. The reason why I say 'most relevant car' should be clear to all. In India it is the small car that rules; a look at the sales charts will reveal that seven small cars are sold to every three-box car! That is a huge ratio by any yardstick and one that most manufacturers are well aware of. Granted profits per car are higher in the mid-size segment and grow fatter up the ladder. But volumes also drop in direct proportion to the exclusivity of the segment. Volumes are present in the small car segment and when you have volumes, profits naturally go up. Maruti knew that, Hyundai and Telco realised it at the start and Daewoo realised it albeit belatedly.
  
In early '99 when the Siena was launched, Fiat India had assured us that the Palio would follow in a couple of months. But various factors conspired in delaying the launch of the Palio. And along the way, sales of the Siena lost steam, Fiat dealers sank to the bottom of customer surveys, quality levels plummeted to worrying levels and Fiat India sank further and further into the red.
  
But things are now changing. Under the stewardship of new managing director M P Bianchi, Fiat India is on a roll again and a wave of enthusiasm has permeated the company. Crowning these winds of change is Fiat India's new corporate slogan, 'Fiat to the max'. This 'to the max' business has been taken to new heights with stuff like 'technology to the max', 'Italy to the max', 'Guigario to the max' even 'Sachin to the max' and to top it all, at the launch party for the Palio the welcome boards read 'welcome to the max'! A definite case of overkill.
  
At the outset, the Palio will be available with a choice of two engines, a 71bhp 1.2-litre petrol and the hot 98.6bhp 1.6-litre unit. Three trim levels will be offered, the base El version, the ELX version with power everything and a load of body embellishments and the GTX version bringing alloys and a spoiler and snazzier interiors to enhance the sporty theme. The GTX SP does get ABS, EBD (electronic brake distribution) and a driver's side airbag making her one of the safest cars around. On test we have the Palio 1.2 in ELX trim and the hot Palio 1.6 in GTX trim. By the end of 2003, all the 178 family cars including the Palio will get a 1.9-litre diesel powerplant but till then diesel is out of the Palio equation. In the coming months we will also see limited edition Palios endorsed by 'Bombay Bomber' Sachin Tendulkar to add a touch of exclusivity to the car.