![]() Financial Daily from THE HINDU group of publications Monday, Oct 06, 2003 |
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Investment World
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Cars Industry & Economy - Investments Columns - Auto Focus Palio NV: A good car that's got better S. Muralidhar
Anyway, the rhyme is obvious and it must have been irresistible for Fiat to put NV and envy together. But apart from the intonation, how envious will your neighbour really get of your new Palio NV? Quite a bit, going by the new mileage numbers that Fiat is boasting of. Simply put, the very reason for coming up with the new version was the poor fuel efficiency of the older version compared to competing cars in the same segment. The larger engine, the thicker gauge steel used in the car, the increased drag on the engine from the powerful air-conditioner, and the car's weight (the Palio is heavier than the Esteem) all led to lower fuel efficiency. Right from when the Palio was first launched, in the last quarter of 2001, low mileage was a major minus for the vehicle. Sliding sales and a flood of feedback from customers led Fiat officials to do a rethink. The new version, therefore, attempts to address some of these problems. Externally, the new Palio is not very different than the old one on a variant-to-variant basis. The additions being a new pair of indicators on the sides and the round FIAT centenary logo will now go on the rear hatch too, in addition to being featured in the middle of the bonnet grille. The front bumper also gets a new air dam for better stability at high speeds. Internally, the new Palio NV gets better, wider seats in the ELX and Sports variants and new upholstery. The Palio ELX NV variant, expected to be the most popular as reflected by previous sales trends, has now been provided with an rpm meter and sporty white dials. Other new features are the door open indicator on all four doors and a roof light with delayed cut off. The delayed cut off, more than helping you during entry, will help in checking if that mobile of yours has been left on the dash after exiting the car. The changes in the Palio NV are largely focussed on making the car more fuel-efficient, a key parameter that the competition had been using to get a leg-up over the Palio. The major changes that have led to an improvement of up to 10 per cent in the car's fuel efficiency revolve around the engine, exhaust and air-conditioning. In addition to the electronic injection being tweaked a bit, Fiat has modified the exhaust system of the Palio 1.2 engine. The catalytic converter has been shifted from its previous location under the body floor and brought closer to the engine exhaust manifold thereby allowing better control of emissions when the engine is cold. This promotes fuel saving primarily during cold starts. The Palio 1.2 has a 130cc air-conditioner compressor, which provides class leading cooling performance. This compressor is much bigger than those provided on competition cars most of which use 110-117cc compressors. However, a large compressor imposes higher load on the engine. To optimise this engine load, the air-conditioner regulation temperature (thermostat function) has been modified. Besides air flow from the blower has also been improved. Both these changes result in maintenance of the old levels of cooling with reduced compressor load on the engine leading to lower fuel consumption. An additional filter has been provided in the air-conditioner air intake to prevent entry of dirt and clogging of the air blower. However, its amazing that despite sourcing windscreen glass from Indian suppliers in the past, the Palio NV is again sporting window and windscreen glass from Brazil. One wonders if this would lead to a higher cost component for customers. Road tests have indicated an approximate 10 per cent improvement in fuel efficiency on the new Palio NV series. This figure, of course, depends on several factors, such as driving habit, traffic conditions, vehicle maintenance and operating cycle. A new service policy has also been introduced by Fiat alongside the launch of the Palio NV. The free service intervals hereafter will be first service at 1,000/1,500 km or two months, second at 7,500 km or six months, and the third at 15,000 km or 12 months. The previous service policy had no time cut-off and offered two free services at 7,500 km and 15,000 km. With the Palio NV, we feel that a great car just got better. But what beats us is why the folks at Fiat, who have been in the Indian market for years now, did not think of making the Palio more fuel-efficient when they first launched it. Again, the new service policy should have been the launch strategy, not an after-thought. Indians love free service campaigns, and the pampering that their cars get (even if it just a water wash). But for the not-so-effective marketing and had it been even more sensitive to Indian preferences, the Palio would have done better right from when it was first launched. At least now, Fiat's chances have been bettered, despite the lack of any major positive developments flowing in from its beleaguered parent in Italy.
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