The Economic Times of India reports that sales of the Palio have dropped sharply in recent months, declining from a high of 3,985 units in April to 2,825 units in July and just 2,106 units in August.
The report says that market sources attribute the decline to a perceived lack of fuel efficiency on the model.
Local Fiat officials are confident of a bounce-back however.
The report adds that production of the Palio in India has been scaled back recently.
Sign up for our daily news round-up!
Give your business an edge with our leading industry insights.
Just Auto Excellence Awards - Have you nominated?
Nominations are now open for the prestigious Just Auto Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!
Nominate Now
