Palio would be introduced in mid-1999 as the company had decided to enter the premium segment first, G Ravina, managing director of Fiat India Auto Ltd (FIAL) told reporters today. Both Siena and Palio are part of the world car series that includes six vehicles sharing the same platform.

The diesel car would have a mileage of 27 km per litre and petrol variant would provide 21.74 km per litre under test drive conditions, Dantini claimed. Palio would have the same engine as that of Siena petrol version, Dantini said.

Fial, the wholly-owned subsidiary of Fiat Auto, hopes to capture a market share of seven to eight per cent in passenger vehicle segment.

Italian automaker is targeting 15 per cent share in the premium segment with Siena, being manufactured at the Kurla plant of Ind Auto, its joint venture with Doshis.

Ind Auto, whereFial has a 51 per cent stake, manufactures the small car `Uno'. Fial has already pumped in Rs 200 crore in the Kurla plant, Ravina said, adding that 10,000 units of Siena and Palio and 20,000 units of Uno would be manufactured next year.

Fial is currently setting up its own manufacturing facility at Ranjangaon in Maharashtra for the world car project, Ravina said. Siena and Palio would be introduced in both deluxe and standard versions with air conditioner as a standard equipment, he said.

Both the cars would achieve an indigenisation level of 65 per cent by the end of the year before raising it to 75 per cent by 1999. This pattern of localisation would be followed for the entire world car project that includes a van, station wagon, and a pick up van as well.

Terming India as the "most important Asian market" for Fiat, Ravina said the company would also export its products to neighbouring markets. As many as 45 dealers have already been put in place across the country and by the year 1999, the dealernetwork would be expanded to 70.