Premier inks three-year deal with Fiat
18 May 2012 4:17 AM GMT
Automaker Premier Ltd on Thursday said it has signed a three year contract to source diesel engines from Fiat India Automobiles for its compact sports utility vehicle Rio.
As part of the deal, Fiat will supply 28,000 units of 1.3 litre multi-jet diesel engines to Premier during the agreement period, the company said in a statement.
Premier is in the final stages of technical integration and expects to receive initial deliveries of the Fiat engines by August-September, it said.
The diesel engines to be manufactured at Fiat's Ranjangaon plant will be utilised for rolling out of Rio at Premier's plant at Chinchwad in Pune.
'This engine will enhance the Rio's power from 65 bhp currently to 75 bhp for the diesel version. It will also enhance fuel efficiency from 16km/ltr to 18km/ltr,' the company added.
Premier Ltd further said with the new engine, Rio is expected to become more expensive by around Rs 45,000 than the present diesel engine on comparable models, although it has not yet been finalised.
At present, the diesel variant of Rio is available at Rs 6.36 lakh (ex-showroom Pune), while the petrol version is priced at Rs 6.15 lakh (ex-showroom Pune).
Currently, most of the Rio are sold in tier II and tier III cities.
'With this engine, Premier Rio will now be BS IV compliant thereby expanding its diesel offering to 14 cities like Mumbai, Delhi, Bangalore, Ahmedabad and Pune,' it said, adding the company planned to aggressively ramp up sales and volumes in these major vehicle markets.
As part of the deal, Fiat will supply 28,000 units of 1.3 litre multi-jet diesel engines to Premier during the agreement period, the company said in a statement.
Premier is in the final stages of technical integration and expects to receive initial deliveries of the Fiat engines by August-September, it said.
The diesel engines to be manufactured at Fiat's Ranjangaon plant will be utilised for rolling out of Rio at Premier's plant at Chinchwad in Pune.
'This engine will enhance the Rio's power from 65 bhp currently to 75 bhp for the diesel version. It will also enhance fuel efficiency from 16km/ltr to 18km/ltr,' the company added.
Premier Ltd further said with the new engine, Rio is expected to become more expensive by around Rs 45,000 than the present diesel engine on comparable models, although it has not yet been finalised.
At present, the diesel variant of Rio is available at Rs 6.36 lakh (ex-showroom Pune), while the petrol version is priced at Rs 6.15 lakh (ex-showroom Pune).
Currently, most of the Rio are sold in tier II and tier III cities.
'With this engine, Premier Rio will now be BS IV compliant thereby expanding its diesel offering to 14 cities like Mumbai, Delhi, Bangalore, Ahmedabad and Pune,' it said, adding the company planned to aggressively ramp up sales and volumes in these major vehicle markets.
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