Mumbai: Premier Ltd, which was formerly known as Premier Automobiles Ltd, has signed a three-year agreement to source Fiat’s 1.3 litre multijet diesel engine to power Premier’s compact SUV Rio, the company said in a statement.
As part of the agreement, Fiat Automobiles India Pvt. Ltd will supply 28,000 engines to Premier during the period. Mint had reported on the company’s plans to source engines from Fiat in August 2011.
The engines will be made at Fiat’s facility in Ranjangaon. The engine supply will enable Premier to sell its SUVs in cities that require the vehicle to be Bharat Stage 4 compliant. Sales have thus far been confined to tier two and tier three cities. The model with the Bharat Stage 4 engine will be costlier by Rs45,000.
Priced at Rs5.25 lakh, (ex-showroom, Pune) the Rio currently sports a Peugeot TUD5 diesel engine.
Deliveries of the vehicle with the Fiat engines will start in August. Premier currently sells the model through a network of 60 outlets. It’s in the process of increasing this to 100 by December.
Making a comeback in the Indian passenger car market after a failed partnership with Fiat in the 1990s, Premier, which used to make the Premier Padmini car, unveiled its first compact SUV in Mumbai in October 2009. The company has since introduced the model in phases in select regions.