Fiat India currently has several product models in its product portfolio including Fiat 500, Fiat Palio, Fiat Grande Punto and Fiat Linea. All models will be expensive with immediate effect after government’s announcement on increase in excise duty from 8 percent to 10 percent. The increase in prices will be in the range of Rs. 7,000 – 15,500.

"The decision to revise the prices of the Fiat Palio, Grande Punto and Linea is a direct result of the excise duty increase as announced in the Union budget today," said Fiat’s official spokesperson.

Meanwhile Fiat India continues to grow in the Indian market. The company is all geared up to launch the new Fiat Linea 1.6 Multijet model in India by middle of 2010. Fiat will also phase out its model Palio when the new emission norms come into force from April 2010. Fiat India will not upgrade its model Fiat Palio but intends to promote Grande Punto as its small car model in India.