Premier confirms diesel engine deal with Fiat

The deal between Fiat and Premier for engine supply has been doing rounds for a while, but both the companies were unwilling to divulge further details. Premier has now confirmed about its renewed alliance with their former partner, Fiat, for sourcing BSIV compliant diesel engines for their compact SUV, the Rio.

As per the agreement, Premier will source 28,000 units 1.3 multi-jet diesel engine from Fiat over the period of three years. The Fiat 1.3-litre multijet is the most commonly used engine in India, as it is used in many models of Tata and Maruti like the Swift, Vista, Manza, Ritz, SX4, Ertiga and others. The ones used for the Rio will be tuned to produce 75PS – exactly the same as seen in the Swift diesel. This engine will allow Premier access to tier I cities, and will help them substantially increase their numbers. The engines will be supply will begin by August-September this year, so we can expect new Rio diesel BSIV to be launched latest by Diwali this year.

Premier is currently producing meager 300 units a month from its facility, with sales just around 2000 units owing to lack of diesel options and service networks. With this deal, Pune based company plans to ramp up production to 1,000 units a month and also establish a few more dealers across the country.