Car news

18 May 2012

Premier to source engine from Fiat

Fiat agrees to supply 1.3 MultiJet diesel engines for use in the Premier Rio

Amaan Ahmed
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India's first and everyone's favourite* compact SUV, Premier Rio has been on sale for quite some time now. Till date, it was powered by Peugeot's antiquated TUD5 diesel engine, which was BS-III compliant only, and pretty sluggish and dated.

But now the Premier Rio diesel may just become relevant to city folks as well, as Premier Ltd. and Fiat India today signed an agreement which allows Premier to source Fiat's popular 1.3 MultiJet diesel engine (featured in many other cars on sale today).

Over a period of 3 years, Fiat will initially supply 28,000 engines - a figure that can go up if demand for the Rio increases - to Premier from its plant in Ranjangaon. The introduction of this BS-IV compliant engine means that the Rio Diesel can now also be sold in major cities like Mumbai, Delhi, Bangalore and Ahmedabad, apart from Tier-II and Tier-III cities. Since this engine is also used by many other manufacturers all across the country, servicing, maintenance and availability of spare parts for it are less likely to be an issue.

The 1.3 MultiJet will help boost the Rio's power output to 75bhp from the current engine's 64bhp, while taking fuel economy up to 18kpl from the existing 16kpl. Premier is in the final stages of testing the MultiJet-engined Rio and should introduce the car in the market by August or September this year. Expect it to cost around Rs 45,000 more than the current diesel Rio.

Premier Ltd. is also ramping up its dealer network, aiming to have 100 dealerships by the end of this year and setting up 200 PASS (Premier Authorized Service Stations) outlets that will be equipped to support the Rio.

Maitreya Doshi, Premier’s Chairman and MD said, “Premier greatly values its past association with Fiat. We are delighted to once again have commercial ties with them”.

Think the MultiJet diesel will turn around the Rio's fortunes?

*probably not true

Tags: premier, rio, fiat

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