Premier Auto Ltd has forged a partnership with Fiat —a decade after the disastrous end of their joint venture which had once ruled Indian roads with its Premier Padmini cars — to source 28,000 1.3 multijet diesel engines for its compact sports utility vehicle Rio for the next three years.
The Euro IV-compliant engine will allow Rio to enter metro markets. “We are in the final stage of testing. Rio, fitted with 1.3 multijet engine, will be launched in August-September,” said Maitreya Doshi, chairman, Premier Auto.
With this agreement Premier will be the fourth automotive player in India to use Fiat’s famed multijet diesel engine, manufactured at its Renjangaon plant. Maruti Suzuki and Tata Motors, besides Fiat are using these engines. Maruti had recently signed an agreement to source 100,000 engines per year from Fiat for Ritz and Swift, while Tata uses it for Indica Vista. Fiat’s Palio and Grande Punto are run on the same engine.
Fiat’s in Renjangaon has the capacity to make 350,000 engines a year. Fiat says 85% of the plant’s capacity is being utilised.