In a major development, Tata Motors has acquired the licensing rights for Fiat’s 2.0-litre Multijet diesel engine. This powertrain is used by Tata in SUVs like Harrier and Safari. Fiat uses this engine for Jeep Compass and Meridian and supplies the same to MG Motor India for Hector and Hector Plus.
According to Autocar India, by acquiring this license from Stellantis, the parent company of Fiat India Automobile Private Ltd (FIAPL), Tata Motors will now be able to produce and build this diesel engine in the Ranjangaon facility which is joint venture between Tata Motors and Stellantis.
Tata Motors has been granted the rights to further develop this engine, giving the company independent authority over its use, design modifications, and upgrades, while the intellectual property rights (IPR) remain with Stellantis. This means Tata Motors can now upgrade this engine to their liking for future iterations of their models using this engine.
How this benefits Tata Motors?
This development comes at a very critical time as Tata Motors plans to expand the usage of this 2.0-litre Multijet diesel engine. It has been reported that the upcoming Sierra launching this fiscal will also utilise this oil burner. With Tata gaining autonomy over this diesel mill, the carmaker now has the flexibility to upgrade the engine independently to meet future emission norms and tailor power outputs.
Demand for diesel vehicles continues to grow even despite strict emission regulations on the cards. Previously, any upgrades or re-calibration on this powertrain needed approval from Stellantis which came at a steep cost. The report claims that even the slightest of alterations in the ECU mapping would cost Tata as much as 10 million Euros (approx Rs 96.92 crore).
This prevented Tata Motors from altering the current output and hence, Safari and Harrier both have been offered with a 168 bhp tune. With this acquisition, Tata may bring a lower state of tune for this engine for smaller models like the upcoming Sierra without having to worry about extra cost. That said, the report clearly states that there will be no change in the production agreement for the engine.
It, however, remains uncertain whether FIAPL’s other customer, MG Motor India, will have access to the upgraded version of this engine developed by Tata Motors. The Fiat 2.0 diesel currently powers the Hector, but MG is likely to discontinue the diesel variant altogether with the launch of the all-new Hector expected in 2026.
