Tata and Fiat are in the news again; first it was with Tata Motors One-Lakh Car, then Tata’s recent partnership venture with the Italian Fiat Auto followed by their first joint venture project Grand Punto and Linea (B and C segment cars respectively) which will be launched by 2008. Today they are on this page because they are taking up another new step in the small cars segment. This new car is to be launched by 2010 and will be a possible replacement to the Palio.

Since the Palio has been a slow mover compared to the other small cars of same class, Fiat-Tata decided to replace this model and have already started working on the developments of the new car. This ‘jugalbandi’ is currently concentrating only on the Palio petrol version (1.1 and 1.6 liter). The other versions like the Fiat Palio (diesel version) and Fiat Siena/Petra have been discontinued.

Their joint network will definitely increase their distribution and servicing strength. Fiat has approximately 65 dealers and is planning to expand to a 100 more by 2008, when the new Fiat models will be launched. Let’s wait and watch for this new under-cover small car, maybe it will prove to be a lucky charm for Fiat!