Indian subsidiary of Italian auto manufacturer, Fiat Auto India Limited, intends to give a facelift to its oldest surviving model, the Palio. The new upgraded model will give a major marketing push to the existing small car which has been into production for nearly eight years. It will thus rule out any phasing out of the model from the Indian car market.

A refreshed Palio with “extremely competitive price tag” is expected to be launched in next 3-4 months. The existing base model is being sold at Rs. 3.45 lakh (ex-showroom, Mumbai). Current models of Fiat Palio are being powered by 1.1L, 57 bhp and 1.6L, 100 bhp engines. These engines are also expected to be upgraded according to BS IV norms coming into effect from April 2010. The new Fiat Palio model is expected to have the new engine of 1.2L and 1.4L (FIRE) that currently powers Fiat Grand Punto. The diesel model of Fiat Palio is already BS IV compliant and does not need to be upgraded.

“Although the Palio has become an old model now, it continues to serve our strategic purpose of being the entry level model in our range, while complementing the Punto. It was, hence, essential to infuse some refreshments to the model to keep it under production,” said a senior executive from the company.

The new model is expected to be same as the recently launched Brazilian model with new grille and new dashboard assembly.