Indian automaker Premier Limited has signed an agreement with the Italian car major Fiat to source from it 28,000 BS-IV 1.3 liter multi-jet diesel engines for its compact SUV Rio over the period of three years from 2012 to 2015. The engines are in the process of calibration at Fiat’s Ranjangaon facility.
The engine deliveries will commence by August-September 2012 as expected by Premier. The company also expects the new engine to increase Rio’s power from 64 bhp to 75 bhp and improve the fuel efficiency of the compact SUV from 16 to 18 kilometer per liter.
According to Mr. Maitreya Doshi CMD Premier Limited, the company plans on boosting its sales volumes with the help of the new multi-jet diesel engine in the Indian market which is growing strong diesel car sales. He added that the company will manufacture cars in the range of 300-1,000 by the end of 2012 and targets sales of 8,000 units in the fiscal 2012-13 and increasing to 25,000 units by 2014-15.
The company is also planning to expand its dealer network from 60 to 100 across 11 cities in India.
