Premier Ltd. (formerly Premier Automobiles Ltd.) and FIAT India Automobiles Ltd. have signed a three year agreement for the supply of FIAT's 1.3 litre multi-jet diesel engine to be used in Premier's compact SUV RiO.
FIAT will initially supply 28000 engines to Premier during the agreement period. According to Premier this volume may rise further with increased demand for the RIO. The engines will be made at FIAT's Ranjangaon plant and supplied to Premier's factory at Chinchwad, Pune; about 60 kilometres away, enabling daily, 'just-in-time' deliveries.
Currently most of the Premier RIO supply is to Tier II and Tier III cities, although there is a strong demand in metros as well. With this engine the Premier RIO will now be BS IV compliant thereby expanding its diesel offering to 14 cities like Mumbai, Delhi, Bangalore, Ahmedabad, Pune etc. The company plans to aggressively ramp up sales and volumes in these major vehicle markets.
This engine will enhance the RIO's power from 64 BHP currently to 75 BHP for the diesel version. It will also enhance fuel efficiency from 16 km/ltr to 18 km/ltr.
The Premier Ltd. stock was trading at Rs.68.35, up by Rs.1.65 or 2.47%. The stock hit an intraday high of Rs.69.50 and low of Rs.66.15.
The total traded quantity was 3320 compared to 2 week average of 3060.