Premier limited, the India-based Utility Vehicle (UV) maker, seems set to bet high on the Indian auto market and grab a decent share in the same. The auto maker has declared that it will start the deliveries of its compact Sports Utility Vehicle (SUV) Rio, assimilated with 1.3-litre Multijet diesel engine, in the Indian auto market from August 2, 2012. The performance oriented engine packed within the upcoming model is sourced from Fiat. Both the auto makers agreed upon the aforementioned deal on May 17, 2012.
The Italian auto giant manufactures the powertrains at its Ranjangaon plant, Pune. Sharing of a 1.3 litre Multijet is a significant move by the Indian car maker as it will be now allowed to deliver its diesel vehicles in all the BS IV states of the country. On the other hand, the petrol model of Rio remains parallel with the BS IV norms; however its earlier diesel model, incorporated with TUD5 engine, was kept at bay in some of the Indian cities owing to the strict emission norms. The TUD5 engine, which was complying with BS III norms, was designed by Premier under the permission of the French car maker, Peugeot.
Coming back to the new model, the incorporation of an advanced engine will take the maximum power of Rio diesel to 67 bhp from the existing 64bhp. With a slight increase in power churned by the new engine, the price of the new model is also increased by a little. Analysts believe that the new model will be placed over Rs. 45,000 from the price of current model, which is presently offered at tag of Rs. 6.36 lacs (ex-showroom, Pune).
The introduction of a new model does not mean that the company will discontinue its TUD5-engined Rio. Instead the car will be still available in the Tier 2 and Tier 3 cities, wherein the demand for BS III vehicles has never reduced. Presently, Premier has maintained a fair network of its official dealerships in the country with 55 dealers carrying the operations of the company across the country. The future plans of car maker include expanding its dealerships in the entire country by 45 new outlets by the end of December 2012. Considering the authorised service outlets of the company, it is planning to take the numbers to 200 all over India.
Rio is not countered among the popular UVs in the Indian auto market and thus, the auto maker needs to do a lot more than just making the car compatible with BS IV norms. However, the model comes with an economical price range, which is its biggest USP but still the car was able to pull the masses. On the other hand, with the launch of a new model, analysts believe that the car will turn the tides in favour of Indian auto maker.
