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-   -   Why palio is lesser priced? (https://www.team-bhp.com/forum/indian-car-scene/43685-why-palio-lesser-priced.html)

Hi Guyz,

why fiat palio is priced comparatively on the lower side compared to other cars in its range. for eg) a 2003 palio is priced around 1.5 L :deadhorse, and santro is priced around 1.8L. Both are having its own advantages and disadvantages. There could be previous posts related to this but would like to learn the intricacies of this difference.

Please pass in your views and thoughts?

regards,
Pradeep

@Pradeep ji: Basically the 1.2 gave lower FE (some i know get 11-12, some get lesser), and the key was lack of spares/service. And inactivity by Fiat India worsened everything. The current management and tieup with Tata is quite good I must say - out of sheer personal experience - though I'm yet to go the MJD way.

The culprit is the After Sales Service and FIAT's poor management team.

Palio is one of the best hatches made in India!
It has got space, build quality, ride comfort, looks etc, but sadly due to the Fiat India's mismanagement in the past, Fiat's brand image took a beating and so cars like Palio, Petra, Adventure didn't do well in the market! And so their prices in the used car market is very low!
Fortunatly, things are changing for good for Fiat in India!
A.S.S is much better now thanks to Fiat-Tata alliance & Fiat is launching a slew of new cars in the Indian market this year!

The company was quite active when it launched the Palio, and the service was also quite professional (personal experience). But then there were strong rumours in the market that the 1.2 engine was giving a mileage of 6 kmpl. After that the Palio stopped selling (it was doing 3000 cars a month at one time), and the company went into a retrenchment mode. The second hand values you see today are a repercussion of that phase. these days, the cars are serviced by Tata, but that is not doing them much good.

Another reason could be that the car itself is not perceived to be as trouble-free as the Koreans and the Japanese. A search on the technical forum would point towards that.

@nicejits, you have to be very careful when you post about the F-word on the forum or you would stir a hornet's nest. LOL.

Poor Sales Management.and expectations as compared to Marutis and Hyundais let them down.

As a car.its gonna live long as u take care of it.dont need to tell the strength of the build.but FE is what a typical Indian mentality concerns for in a car and that let down!

Only way is to Test Drive the car and then compare with others which should answer your concerns!

Cheers~

Note from the Team-BHP Support : Please take the time to use proper punctuation as per Team-BHP rules. Avoid...typing...like...this. Thanks.

Obvious. It is not in demand, and like Aveo/UVA/SRV has to be priced lower than the competition to attract buyers. However, like a Corsa, it is an excellent car, from the reviews of many members on this forum.

Availability of spares & company sleeping aside the real reason about the low resale value is that not many want it in the used car market. The prices in the used car market are driven purely by demand. There are plenty more of Santrowaleees than fiat wallahs. Of course that makes it easier for fiat enthus to pick up a used palio, right ?

Not only is it a buyer's market in used Palios, perhaps one can even buy a used Palio at a price of a new motorcycle.

I could understand that, people prefer marutis and hyundians because it has more service centres compared to fiats. Is this perception changing now for fiat, when tatas have stepped in to provide after sales service in india.

regards,
Pradeep

Simply demand & supply. No one wants the Palio new, no one wants it used either. Poor resale makes for a fantastic used buy though, as many enthusiasts have discovered with the 1.6 GTX.

I must admit with Tata Alliance,Fiat cars can have a better hope.
I have taken my Palio GTX for servicing at Tata and found a new ray of hope and satisfaction.Tata has consecrated an entire floor in the service dept for Fiats separate from Indicas et al.
Also spares have been well available after Tatas took over the stocks.
fiat can breathe a new life in India.

GTO, this statement doesn't hold good now, considering the success of Palio 1.3 MJD, we can see so many new Palio MJDs on this forum & as well as on Bangalore roads!

Also there is a good demand for preowned Palios in the Used car market, but most of the Palio owners don't easily sell their cars, so very difficult to get used Palios in the market.

In my experience cars from Maruti and Hyundai have more resale value than all others. and for the valid reasons - service support & reliability. But than we cange the language of your questions like this - Why second hand Maruti & Hyundai cars are so costly compared to others? :). On a serious note, I did feel martui and hyundai second cars a little overpriced.. at least during my hunt for one in Hyderabad. But to answer your original questions, like other said - Poor Mangement of Fiat India, a bad reputation of Car's milage ( though I dont agree) are main reasons!