Premier becomes fourth car maker to source Fiat's 1.3 L Multi-jet diesel engine

Friday 18 May 2012, 13:36 PM by

Premier became the latest automotive company operating in the domestic market that has procured Fiat's 1.3 L Multi-jet diesel engine. This engine will be assimilated in the Indian manufacturer's RiO compact Sports Utility Vehicle (SUV). It is expected that the Italian car maker will deliver 28,000 units of the engine to Premier in the start, though this figure may rise in the future, in line with the demand for RiO in the market.

With the integration of Fiat's 1.3 L Multi-jet diesel engine, the compact SUV will be able to churn out 75 bhp of maximum power as compared to the 64 bhp generated by the current engine. Moreover, its fuel efficiency will also get a boost as the mileage will rise from 16 kmpl to 18 kmpl. This motor is produced by the Italian manufacturer at its Ranjangaon unit and will be delivered to Premier's Chinchwad facility. Since the two plants are located just 60 km away, the latter can expect frequent and on-time delivery of the consignment.

Speaking about choosing the award-winning engine from Fiat's portfolio for Premier RiO, Maitreya Doshi, Chairman and Managing Director (MD), Premier, commented, “Premier greatly values its past association with Fiat. We are delighted to once again have commercial ties with them.”

Presently, Tier I and Tier II cities account for the major portion of RiO's sales in India, though there is decent demand for the model in metros too. Now that the assimilation of the new engine has been finalised, the car will comply with the stringent BS IV norms, thus extending its reach to 14 new cities, including Mumbai, Delhi, Bangalore, Ahmedabad and Pune, among others. Premier is devising plans to adopt an aggressive strategy in order to boost sales and increase volumes in these regions.

Even though there is no official confirmation as of now, it is speculated that RiO with 1.3 L Multi-jet diesel engine will cost Rs. 45,000 more. This figure is deemed acceptable by experts since the car will now become BS IV compliant and will be able to make inroads into new cities, thus increasing sales prospects.

With this deal, Premier has joined the ranks of four other auto majors that rely on Fiat's 1.3 L Multi-jet diesel engine. Maruti Suzuki India uses it in its Swift, Ritz, Swift DZire, SX4 and the new Ertiga, while Tata has incorporated it in its Indica Vista and Indigo Manza. General Motors also integrates it in cars that are headed to India, such as Enjoy Multi Purpose Vehicle (MPV) and Sail hatchback. Of course, Fiat uses it in its own Punto and Linea as well.

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