The deal will use a variety of promotional tools across the site, including advertising, a branded text link in 's newsletter and sole sponsorship facing key pages of the spring fashion report.
The sponsorship is worth £50,000 and has been brokered by the media planning and buying agency Starcom Digital.
Dermott O'Reilly, account director at Starcom Digital, said: "New Panda is positioned as a city car for female urbanites, mainly in their 20s and 30s. Our research shows that shopping and fashion play an important part in these women's lives."
Fiat is not the first car maker to target Handbag's audience of 24- to 44-year-old women, following hot on the heals of Mazda, which sponsored Handbag's London Fashion Week pages, and Mini, which is promoting its new convertible model across the site.
Alicen Stenner, brand director at Handbag.com, said: "The trend in car manufacturers accessing the Handbag audience is accelerating. It's great news that an increasing number of brands like Fiat Panda are switching on to Handbag.com and are understanding the branding benefits and success of online as a platform in which to drive awareness."
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