Premier (formerly Premier Automobiles) has signed three year pact with FIAT India Automobiles for supply of FIAT’s 1.3-litre multi-jet diesel engine to be used in Premier’s compact SUV Rio.
Fiat will initially supply 28,000 engines to Premier during the agreement period. This volume may rise further with increased demand for the Rio. The engines will be made at FIAT’s Ranjangaon plant and supplied to Premier’s factory at Chinchwad in Pune, about 60 kilometers away, enabling daily, just-in-time deliveries.
Currently, most of the Premier Rio supply is to Tier II and Tier III cities, although there is a strong demand in metros as well. With this engine, the Premier Rio will now be BS IV complaint thereby expanding its diesel offering to 14 cities like Mumbai, Delhi, Bangalore, Ahmedabad, Pune etc.