Premier Ltd has re-entered the Indian passenger car segment with the launch of the Rio compact SUV in Mumbai on October 28.

Rio is being sourced from China’s Zotye Auto and being assembled at Premier’s plant in Pune. It is actually based on the 1997 Daihatsu Terios which Zotye makes in China. The SUV is powered by a Peugeot-derived 1.5-litre, 65bhp diesel engine and prices range from Rs. 5.25 lakh to Rs. 6 lakhs for the three versions.

According to Maitreya Doshi, CMD, Premier, "we are targeting a niche segment with the Rio and are following a low investment, low risk and low breakeven strategy. We have done all the engineering and homologation work to adapt the Rio for India and will be selling it through our retail network."

29/10/2009