Premier Rio to get new diesel power

Premier and Fiat India have signed a three-year deal for the supply of Fiat's much acclaimed 1.3 litre multi-jet diesel engine. This engine will now power Premier’s compact SUV, the Rio.

As per the deal, Fiat will initially supply 28,000 engines to Premier during this period. This number may further increase looking at the market demand for the new BSIV diesel powered Rio.

Premier has already begun trials of its compact SUV, equipped with 87bhp 1.3-litre diesel engine. The Rio 1.3 MultiJet will be crucial as it allow Premier to sell the diesel variant in the BS IV markets. The Rio’s petrol version meets BS IV norms but the current diesel variant with the TUD5 engine complies only to BS III norms. The company has stated that new engine will enhance fuel efficiency from 16kpl to 18kpl.

Premier is also planning a new ad campaign that may be launched along with the forthcoming Rio 1.3 MultiJet. This will include a television commercial and will aim at a change in the brand positioning. It will focus on Rio as ‘India’s first and only compact SUV’, a move from its current positioning as ‘India’s first compact SUV’.

Premier is also simultaneously working on expanding its sales and service network. The company says it will ramp up its dealership network to 100, from the current level of 60 by the end of this year. It is also in the process of setting up 200 authorised service stations.

The compact SUV space is set to see some new players starting from this year. Global and domestic OEMs like Ford, Mahindra, Hyundai and Suzuki are lining up models for this segment. Ford and M&M are expected to launch their models this year.

Premier is in the final stages of technical integration and expects to start initial deliveries of the BSIV Rio by August or September 2012. Expect the new Rio diesel to be priced around Rs 45,000 (estimated) more than the current BSIII diesel model.