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The Mark III was released in 2004, designed again by [[Giorgetto Giugiaro]]. It is basically a facelift from the previous models. The 2004 Palio was the very first Brazilian model in the B-segment available with four [[airbag]]s (two front airbags and two side airbags), parking assistance, and light and rain sensor. In Europe, the new model featured a Mark III front fascia and interior and a Mark II rear fascia. It has also a sport version called the '''Palio 1.8R''' which has a new version of the General Motors 1.8 L "[[GM Family 1 engine#GM do Brazil|Powertrain]]" engine rated at 115 hp (ethanol) and 112 hp (gasoline), lowered suspension, new 14 inch alloy wheels, new seats, and other sporting features. The third generation of the Palio had huge sales numbers, even getting higher sales in some months than [[VW Gol]], the Brazilian best-selling car for over twenty-four years. It is currently still sold as "Palio Fire Economy" as a cheaper alternative to its posterior facelift, with alterations derived from the "Uno Mille Fire Economy" model.
'''[[Fiat India]]''' is making the Mark III palio with old Mark II interiors at Ranjangaon plant along with [[Grande Punto]], [[Linea]]. After entering into a partnership with Tata Motors, the Palio has been relaunched as '''Palio Stile''' with 1.1 Fire, 1.6 Torque and 1.3 Multijet engines. Sales have been low at hardly 200 units per month
[[Image:Fiat Palio Stile Multijet Diesel.jpg|right|220px|thumb|Fiat Palio 1.3 Multijet Diesel in India]]
==Mark IV (2008–present)==
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