We had brought you the news about Premier being in talks with Fiat India for getting its 1.3-litre diesel engine. Back then, when the news was leaked, both the companies refused from divulging any details regarding this deal citing that talks are on and finally, the deal has been done. Premier and Fiat India have signed a three-year deal for the supply of Fiat’s much acclaimed 1.3-litre Multijet diesel engine. The 1.3-litre diesel engine will be plonked into its compact SUV, the Rio. As per the agreement, Fiat will be initially supplying 28,000 engines to Premier Auto in this period.
Further on, the supply requirements will be based on the demand that Premier witnesses with the Rio vehicle. The 1.3-litre diesel engine will be producing 87 BHP of power. With the 1.3-litre Fiat diesel, Premier will be able to sell the Rio in BSIV cities. Currently the petrol engine of the Rio complies with the BSIV norms but its TUD5 diesel engine is only BSIII compliant only making Premier go for this deal. Premier has also stated that with the use of the engine, the Rio’s fuel efficiency will be increasing from 16 kmpl to 18 kmpl. The company is in the final stages of the technical integration and will be launching the vehicle by August in the Indian market. The Fiat powered diesel engine in the Premier Rio is expected to be dearer by about Rs. 45,000/- compared to the BSIII model.
Premier is also working on expanding its dealership network, from the current 60 outlets to 100 outlets by the end of the year. The company is also setting up 200 service centers, which would service the Rio. Premier looks very serious and is dedicated to make the Rio a success in the country. The automaker has been constantly working on improving the Rio and is get ready for the upcoming battle in the compact SUV segment.
