Fiat Premier Padmini to join hands once again, Fiat to supply 1.3L diesel engine for Rio

What if Fiat Auto is not doing great in selling cars in India, their engines are very much in demand. Fiat Auto India plant in Ranjangaon near Pune has a capacity to manufacture 300,000 units annually. Fiat is already providing engines to Maruti Suzuki and Tata Motors, and now they are very close to signing a deal with their old partner, Premier Padmini which will see Fiat providing 1.3L diesel engines to power Rio mini SUV.

Mr Maitreya Doshi, MD & Chairman, Premier Padmini Automobiles, said, “We have been in talks with Fiat for quite some time. There are a couple of vehicles in Italy right now which are being tested; once the technical integration is ready, we will enter into a component supply agreement with Fiat.” On the other hand, Mr Rajeev Kapoor, MD, Fiat Auto India said, “Yes, we are in talks.”

Fiat India is not able to generate enough revenue by selling cars in India. “The engine is under final calibration, once it’s over, it will take another two to three months to be used. Though it is not a big volume, it will definitely offer additional revenues to Fiat India,” added Mr Kapoor.

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 cater 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,” Mr Doshi added.