So are these the cars to set the small car segment on fire? On the plus side we have an excellent ride, good performance (stonking performance in the 1.6), excellent interiors and generous boot space along with superb exterior looks. On the minus side there is the frightening fuel consumption and this I might add is a big minus against the car.
  
In my opinion, it will be the Palio 1.2 EL that will garner majority of the volumes for Fiat Auto and set the sales charts on fire. Priced at Rs 3.49 lakh ex-showroom Delhi, she is slam bang in the middle of Santro/Matiz/Zen territory and is frankly a cut above them. The 1.2 ELX has been priced at Rs 3.73 lakh and that includes power everything.
  
As an out and out hot hatch, the Palio 1.6 GTX doesn't cut much ice. Sure stonking straight-line performance is there on hand but the handling and road holding that we would expect from a hot hatch is lacking in the Palio. Even the driving position isn't sporty, the driver sitting on the car rather than in the car, the cramped footwell placing the pedals too close together for comfort and thick A-pillars impairing visibility. Consequently the 1.6 GTX will remain the domain of the chosen few who can afford to pay a premium for performance, and there aren't really too many of them around burning a hole in their pockets. At Rs 4.99 lakh though, the price per bhp ratio is unbeatable and for wannabe racers, this is the car to have.
  
So the 1.2 it is, good performance, great interiors, great ride and decent handling. Now what remains to be done is for Fiat to get their sales and service up to scratch. Fiat dealers lie at the bottom of customer ratings and are one of the most disgruntled of the lot. Unless this aspect is seriously looked into, Fiat can forget about any major volumes for the Palio. And also quality levels better get sorted out before market rumours squash the immense potential of this car.
   
In conclusion, would I buy this car? An emphatic 'yes'. But first things first - fix an appointment with a garage that does CNG/LPG conversions. Else don't come running to me if the fuel bills drive you to ruin.