Premier Ltd and their former partner Fiat are close to signing a deal after 15-years. Premeir Ltd, managed by Walchand Hirachand Group, manufacturer of one of the iconic car ‘Padmini’ that went for three decades on Indian roads from 1955 to 1985, re-entered the passenger vehicle segment with Rio – launched in 2009.
The company wants a slot of its own for a compact suv –Rio. So, the company has turned to Fiat for support to source 1.3-litre multi-jet diesel engine in order to survive in competitive Indian passenger vehicle market.The 1.3-litre multi-jet diesel engine is already powering Maruti Suzuki Swift and Tata Motor’s Vista. The Premier is planning to source 6,000 to 8,000 engine units from Fiat which will be catered to 13 cities including the metro cities – Delhi, Mumbai, Chennai, Kolkata and Bangalore. The engine units’ supply conforms to Bharat Stage IV emission standards.
Till date, Padmini has sold approximately 2,000 units of Rio in the Indian auto industry. Demand for SUV’s in India is on the rise and because of which, Padmini plans on utilizing this opportunity. Premier Padmini will also increase their sales and service network in India so that they can be presented to a bigger crowd. “Unlike other established automakers that have running businesses, for us, it is a restart after a decade. We have decided to let capacity chase demand, rather than create capacity and then wait for demand” stated Mr Maitreya Doshi, MD & Chairman of Premier Ltd.
Mr Maitreya Doshi, MD & Chairman,