Premier and Fiat ink diesel engine supply agreement for 'Rio'

This engine will enhance the diesel Rio's power from 64.8PS to 76PS and fuel efficiency from 16kmpl to 18kmpl


Maitreya Doshi, Chairman & MD, Premier Ltd.  & Rajeev Kapoor, President & CEO, Fiat India Automobiles Pvt Ltd



Premier and Fiat India have signed a three-year agreement for the 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. 


According to Premier this volume may rise further with increased demand for the Rio. The assembled diesel engines from Fiat’s Ranjangaon plant will be supplied to Premier’s factory at Chichwad, Pune, which is 60 kilometres away. Fiat’s 1.3-litre multi-jet diesel engine will enhance the Rio’s power from a 64.8PS to 76PS and fuel efficiency from 16kmpl to18 kmpl.


Commenting on Premier’s decision to opt for Fiat’s tried and tested diesel mill to power its new Rio model, 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.”


Currently, the demand for the Premier Rio is from 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 compliant thereby expanding its range to 14 cities like Mumbai, Delhi, Bangalore, Ahmedabad, Pune etc. The company plans to aggressively ramp up sales and volumes in these major vehicle markets.


Though not yet finalised, the ex-showroom price of the Rio (Read : First Drive) with the inclusion of the multi-jet powertrain is expected to be Rs 45,000 higher than the present diesel engine on comparable models, a difference that could be justified since the new engine will transform the Rio from a BIII to a BSIV compliant vehicle.

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