I own a Palio for last nine years.
The car is doing fine and giving a stable milage of 9-11km in city(Delhi). Car is nice to drive and engine is very smooth. Ride quality is exellent and best part is hydraulic power steering, which is well balanced.
My car got partially submerged in water for 1 day in 2005(vadodara floods).
After repairs it did well and clutch was replaced only in 2007.
Now we use Palio only for short distances in the city, to reduce the maintenence cost.
Service support from TATA is not satisfactory, hence I get it serviced from private garage.
Engine is still trouble free. Electricals are fine, with three fuses changed in 9 years.
Tyres changed once after 30, 000 Km.
2013
Now its 11 years. I am still using Palio for short distance drives(5-10 Km). For past three years average run is 4000 Km/year. Car is doing fine, with stable average of 9-11 Km in a 20-60Km/hr city driving conditions. AC is fine after gas refill 2years ago.