Mumbai, May 17 Fiat India will supply its 1.3-litre multi-jet diesel engine to Premier Ltd (formerly Premier Automobiles).

Premier and Fiat India have inked a three-year agreement for the purpose. The engine will be used in Premier compact SUV RiO. Fiat will supply 28,000 engines during the period.

Premier in a communiqué to the exchanges said the engine will enhance RiO power from 64 bhp now to 75 bhp for the diesel version. It will also improve fuel efficiency from 16 km/litre to 18 km/litre.