Premier and Fiat India have now signed a 3 year agreement which will see the latter supply 1.3 litre multi-jet diesel engines that will power Premier’s compact SUV, RiO. The initial agreement has been made for a supply of 28,000 engines, and the number could be revised with increase in demand for the RiO.
Fiat’s 1.3-litre multi-jet diesel engines will be made at the Ranjangaon plant for supply to the Premier factory at Chinchwad, Pune ensuring daily, ‘just- in – time’ deliveries. The use of a popular engine will work in favour of Premier as it facilitates service, maintenance, and spare parts availability pan India.
At present, most of the Premier RiO SUV supply is concentrated on Tier II and Tier III cities, and the new BS IV compliant engine inclusion will allow the manufacturer to supply to 14 additional cities. Fiat’s 1.3 litre multi-jet diesel engine will boost power to 75 BHP from the current 64 BHP and fuel efficiency will improve to 18 kmpl from the current 16 kmpl. The engine boost points to a price mark up in the range of Rs 45,000.