"We are exploring the option of launching a 1.6-litre version of the Siena. The segment is growing at a fast pace, and we would like to be present there. No final decision has, however, been taken in this regard," FIAL managing director G Ravina said.

FIAL is the local holding company for Italian car giant Fiat Auto Spa, and owns 93 per cent stake in Fiat India (the erstwhile Ind Auto), which manufactures the Siena and the Uno in India.

The mid-size car Siena is now available in seven variants, with each sporting 1.2-litre engines.

According to the Fiat India chief, the 1.6-litre version of the Siena is being sold by Fiat in many international markets, including South Africa, and the introduction of the model "will not take much time."

The Ford Ikon has emerged as the largest-selling car in the mid-size segment, with sales of 1,386 units last month. The Hyundai Accent bagged the second slot, with sales of 1,272 units, while the Maruti Esteem came third, with February sales of 1,113 units. Fiat India sold 340 units of the Siena last month.

"A section of the customers is demanding high-powered engines, and the 1.6-litre Siena, if finally launched, will address the need," company officials said.

FIAL has decided to launch the Weekender version of the Siena in May, and plans to roll out its world car-Palio-next year.

"The Palio will sport features ideally suited for the Indian consumer, and will be competitively priced. We are confident that the car will create a niche for itself," Ravina said.

The company is focusing on vendor development for Palio, which will have an indegenisation level of around 70 per cent "to begin with".

Meanwhile, FIAL announced on Tuesday that the operating company Ind Auto has been rechristened as Fiat India, following the increase in Fiat's stake in the joint venture to 93 per cent. The shareholding of the local partner, Premier Automobiles, will stand reduced to 7 per cent.

"Fiat India will now manage all the car operations of Fiat in India to re-inforce Fiat's brand equity in the country," a statement said.

The issue of fresh equity will bring in Rs 160 crore into Fiat India. The company's authorised capital has also been increased to Rs 2,000 crore "as part of Fiat's commitment to its Indian operations".

"The increasing global nature of the auto business requires large quantities of capital with long-term returns. Premier Automobiles' decision to withhold further investments and, thereby, dilute its shareholding percentage is in line with other joint ventures in the Indian automobile sector," Ravina said.