Tata Motors has taken a strategic leap in its powertrain portfolio by acquiring a license to produce and independently develop Fiat’s 2.0-litre Multijet II diesel engine, which powers the popular Harrier and Safari SUVs. This engine, manufactured under license by Fiat India Automobile Private Ltd (FIAPL)—a joint venture between Tata Motors and Stellantis at Ranjangaon—will now see Tata assuming control over upgrades and modifications.
A Tata Motors spokesperson confirmed the new arrangement, explaining that under a License Technology Agreement signed in Q4 FY25, Tata Motors Passenger Vehicles (TMPV) has gained rights to carry out technical developments and modifications on the FAM B 2.0-litre diesel engine to meet upcoming regulations and enhance performance. While Stellantis retains the intellectual property rights (IPR), Tata’s license grants it autonomy to recalibrate, upgrade, and innovate without seeking external approval.
Crucial Timing to Bolster Competitiveness
This move arrives at a critical juncture as Tata’s Harrier and Safari face mounting competition, hindered previously by limited powertrain options. The newfound autonomy allows Tata Motors to swiftly upgrade the engine to comply with future emission norms and customize power outputs, a flexibility sorely needed amid the ongoing demand for diesel SUVs despite growing electrification trends.
Previously, all engine calibrations required Stellantis’ involvement, incurring prohibitive costs—up to 10 million euros just for ECU tuning—which limited Tata to a single 170hp calibration during the BS6 transition. This restriction prevented the company from offering variant differentiation via multiple power outputs, unlike arch-rival Mahindra, which leverages its in-house 2.2-litre mHawk diesel across several models with various power tunes and drive modes.
End of Reliance on Stellantis Delays and Costs
Tata’s engineers had long sought power improvements, pushing for an increase from 170hp to around 180hp for the 2023 Harrier and Safari facelifts to better rival Mahindra’s offerings. However, the cumbersome approval process with Stellantis delayed progress, causing frustration within Tata. The license acquisition now enables Tata to bypass these constraints and accelerate powertrain development in-house.
Manufacturing to Continue Jointly, but Upgrades Controlled by Tata
The manufacturing arrangement remains unchanged, with FIAPL continuing production of the 2.0-litre engine for both Tata and Stellantis. The intellectual property of the base engine remains with Stellantis, but any modifications developed by Tata will belong solely to TMPV. It remains uncertain whether MG Motor India, another FIAPL customer whose Hector SUV also uses this diesel, will benefit from Tata’s upgrades—especially as MG may phase out diesel powertrains by 2026 with the new Hector launch.
Strategic Win Amid Diesel’s Uncertain Future
Securing development rights for the 2.0 Multijet diesel is a pragmatic move by Tata. Building a new large-capacity diesel engine from the ground up would be costly and time-intensive, especially as the future of diesel remains uncertain. Instead, Tata gains a proven, emissions-compliant powertrain platform that can be evolved with moderate investment.
The 2.0-litre Multijet II engine, a globally supplied and well-established diesel mill, follows in the footsteps of the successful 1.3-litre Multijet that powered dozens of models across India. While not cutting-edge, the engine remains highly relevant in the SUV segment. Crucially, Tata now holds the reins to innovate and optimize it, setting the stage for stronger competitiveness and responsiveness in a rapidly evolving market.