Corsa's uncommunicative steering takes the fun out of driving but ride comfort is in a class of its own.

Step one, the physical examination. Let's draw parallels first. Both cars have 1600cc engines that drive the front wheels, both weigh more than a ton (the Palio is heavier by 70kg). But the similarities end there. The Corsa uses a simple two-valve-per-cylinder layout with a single overhead cam actuating the valves.
The Fiat's 'torque' unit on the other hand is an all-singing all- dancing powerplant. Double overhead camshafts, 16 valves, hydraulic tappets and a 32-bit electronic brain make this one of the most high-tech engines around. While the Corsa pumps out a maximum of 92bhp and 12.2kgm of torque at 3200rpm, Fiat's Palio has a belter of a motor, which delivers a maximum of 100 stampeding horses and some serious shove in the form of 14kgm of torque.

A short first gear makes the Corsa Sail quick off the mark but beyond the first few metres, the Palio has the measure of it. Always. That's not to say the Sail is slow. Times posted on the track prove that the Sail takes a second longer to reach the 100kph mark and is two-and-a-half seconds slower to 140kph. Both cars can cruise comfortably between 120 and 130kph, and bursts to speeds above 170kph are attainable too.

What lets the Corsa down is an engine that feels coarse when extended to full revs and a sloppy gearshift, which also detracts from any driving pleasure. It lacks the mid-range grunt of the Palio and the same effortless performance. The wide torque spread of the Palio's 1.6 engine is its forte; it gives the Fiat the flexibility to happily potter around in bumper-to-bumper traffic or chew up the highway, and all with minimal fuss. The cable-operated gearshift is pretty smooth too and we love that leather-wrapped gearknob.

Where the two cars differ substantially is in their ride and handling characteristics. The Corsa is the better riding of the two, thanks to a comfort-oriented suspension system that is astonishingly quiet and works smoothly on virtually all surfaces. In contrast, potholes and broken roads filter through in the Palio, which runs on low 65-profile tyres. At high speeds, both cars feel well anchored and stable, and impart a sense of confidence you just don't get in a smaller car.

Ask for a quick change in direction and the Palio's superiority in this area comes shining through. The stiffness of the chassis and the delightfully responsive and well-weighted steering make the Palio a joy on any twisty road. It dives and ducks into corners with an enthusiasm that is only matched by the Ikon. The car feels connected to the road at all times, the front wheels imparting good feedback to your fingertips.

The Corsa, in contrast, has a benign nature. The steering, which feels mushy, is the party pooper and does not encourage quick steering inputs from the driver. The chassis doesn't feel as taut or cohesive as the Palio's, and there's a certain looseness in the Corsa's handling that doesn't make it as much fun to drive as the Palio. However, the Corsa's brakes feel much more reassuring than the Palio's, whose spongy pedal has been a sore point since the car was launched.

Sharp and well weighted steering means Palio dives eagerly into corners, ride feels distinctly harsh.

We preferred the Palio's looks: Guigiaro's sharp styling, with those stunning clear headlights, the flame-shaped tail-lamps and the solid, well balanced stance on attractive alloys make the Palio one of the best looking cars around. The Corsa looks more rounded, especially in hatch form, but it's a design that's looking a touch dated and bland.

Crucified for its thirst it may be, but the Palio 1.6's thirst is just as good or bad as the Corsa's. In town, the Corsa gave 9.2kpl to the Palio's 9.1 and on the highway, the Palio returned 14.1kpl to the Corsa's 13.9. These figures are pretty much the norm for a large hatchback with a large engine.

Priced at Rs 4,96,000, the 1.6 Corsa is Rs 8,000 cheaper than the Palio and better value for money. It is far better equipped, as it comes with useful features like the triple-information display, though alloys are not standard. The Corsa is the more practical of the two, offering a touch more comfort, thanks to superb interiors and a soft ride. GM India's sales and service network is better, and the Corsa has proved to be quite reliable too.

However, when you buy a hatch with the larger engine option, you are looking for power, acceleration, a fun-to-drive element and sexy looks.

The Palio has all of these. True, the Palio's interiors look cheap in comparison and it is even more expensive, but in the final analysis it's got the ingredients to make it easily the more desirable of the two. For a hot-hatch buyer, that's what counts.