You owe it to your hard earned money to read the review by pullockaran on the consumer case and the Indica. There is no contest as far as your decision is concerned. Palio beats the Indica hollow in every respect mileage, comfort and acceleration and FIAT service not withstanding.
I owe an Indica and know the design flaws in the vehicle. The reason that my car could not be repaired even after it was serviced umpteen times and thousands spent on it by the authorized service centre speaks volumes about the quality of the car even though it was a brand new car and without any accidents till date. Do yourself a service and go ahead and buy any other car but the Indica.
I have driven the new Indica V2 and feel that reviewers have been influenced by TATAs might as I can say for sure that my present Indica with all its ills is still far better than the new model contrary to what you might have read in the paperbacks.If you want the complete consumer court case files I will gladly send it to anyone who could email me at pullockaran@asianetonline.net