Fiat Palio is Down but Not Out

Not all news about Fiat India Automobiles has been good lately. The sales of the Fiat Palio, a compact car has suffered resulting in production being halved.

The Society of India Automobiles Manufacturers (SIAM) has reported that the Palio sold 667 units in four months from January. It had sold 1.452 units in the corresponding period last year.

The Fiat India Automobiles vice-president, Mr Ravi Bhatia said "Production was affected due to lack of paint shop facility. We now have our own paint shop and the company hopes that Palio sales will pick up soon. The Palio is the lowest priced model among Fiat cars in India and maintains its position as the largest selling one. Palio alone constituted 43 percent of the total sales for Fiat in the last financial year. Fiat India sold 8,087 units in the domestic market in 2008.

Fiat Palio is available in both petrol and diesel versions. It has been facing stiff competition from Maruti Suzuki Swift, Chevrolet Aveo UV-A, Hyundai Motors and Skoda Fabia.As the new hatchback Grande Punto launched this month, is the enthusiasm is likely to rub on Palio too. Consumers are likely to give a fresh thought to buying Fiat cars.