![]() Financial Daily from THE HINDU group of publications Sunday, Mar 30, 2003 |
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Investment World
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Investments Columns - Auto Focus Fiat bets on diesel duo S. Muralidhar
FACED with a real slowdown in sales of its flagship model Palio, Fiat India was probably waiting for the launch of the diesel variants of the car, much more eagerly, perhaps, than customers in this segment.. The diesel Palio, launched earlier this month around the country in a phased manner, was scheduled for launch this quarter, but it is a shrewd move by Fiat to have rolled out the car after the Budget. That said, Fiat does seem to have managed a winning combination in the new Palio and Palio Adventure diesels. With a renowned powertrain and decent NVH (noise, vibration and harshness) packaging, the new diesel-powered car will find takers, especially in the `diesel-biased' South. The diesel Palio is driven by Fiat's powerful 1.9 litre, D-Tech engine. The company says that it is one of the most modern indirect injection, naturally aspirated diesel engines in the world. Palio diesel is being offered in three variants EL, ELX and the top of the line, fully loaded ELX SP. Externally, the Palio diesel continues to be identical to its petrol-driven sibling and is expected to attract as many eye-balls for the stylish redesign that Guigiaro did three years ago, infusing fresh life into the Fiat 168 world car platform. The new diesel Palio is also aided by a new engine management system that allows the car to touch a top speed of 155 km per hour (kmph). Palio diesel's 1.9 litre D-Tech engine generates an impressive 63 bhp at 2500 rpm, with a torque of 12.2 kgm at 2500 rpm. In comparison, Tata Indica diesel packs about 58 bhp, Maruti Esteem's TUD5 57 bhp, Ford Ikon's 1.8 litre Zetec 61 bhp and Tata Indigo's diesel engine offers peak power of about 62 bhp.
Mr Alberto Montanari, Chairman and MD, Fiat India, displays the new Palio diesel engine.
For Palio diesel, power steering and an effective air-conditioner are standard across all the variants. The other features of the car, many of which are standard on the petrol version too, include specially padded bonnet insulation for noise reduction, power windows with child lock, height adjustable front seatbelts, fire prevention system, collapsible steering wheel, side-impact beams and an `Amus' crash-tested strong body shell. Anti-lock braking system (ABS) with electronic brake distribution (EBD) and driver side airbag are the other options being offered. This is the first time that these safety features are being offered in this segment. An interesting addition in the Palio is the diesel adulteration device, which is a lamp on the indicator cluster that senses water content in the fuel and indicates such adulteration. Palio diesel has been competitively priced, though excise-level cuts post-Budget, the prices are still a shade higher than other cars in this segment. However, given the fact that many of the other manufacturers may hike prices soon, Palio diesel's pricing may not be all that bad. Again, the value packaging should be an attraction to the potential customer. Across the variants, Palio diesel's price ranges between Rs 4.22 lakh and Rs 4.77 lakh (ex-showroom, Chennai). The car comes in seven colours.. Fiat is also offering the Palio Adventure the weekend version of the Palio with the 1.9 litre engine. The diesel Palio Adventure has also undergone a mild makeover, with a few cosmetic additions to the exterior. To suit its off-road terrain image Fiat has given the Adventure an impressive ground clearance of 190mm. This would probably even come in handy when drivers attempt to tackle the massive speed breakers so endemic to roads in many Indian cities. Under the hood of the Adventure, the 1.9 litre D-Tech engine belts out the same 63 bhp at 4500 revs. The all-terrain Pirelli tubeless tyres, specially designed 14-inch alloy wheels with moulding on the wheel arch and a new `double-railed' roof rack enhance the overall appearance of the vehicle. Clear glass `wrap-around' headlights, an additional pair of protected oval fog lamps and a stylish bull bar go with the macho styling. Engraved door handles, sleek and sturdy footboards on either side of the vehicle and tough black bumpers have been added. Fiat has also attempted to offer the Palio Adventure buyer more value and style in the interiors of the car. On offer are electrically adjustable door mirrors, full door trims with fabric inserts, wooden embellishments on the dashboard, a tachometer and a Kenwood music system with six speakers. The Adventure has been priced at about Rs 7 lakh, ex-showroom.
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