Tata Motors will soon a powerful version of its flagship SUVs in India to take the fight to Mahindra!

Tata Motors has secured the licensing rights to develop and upgrade the 2.0-litre Multijet II diesel engine that currently powers the Harrier and Safari SUVs. This engine, originally manufactured under licence by Fiat India Automobiles Private Ltd (FIAPL) – a Tata-Stellantis joint venture in Ranjangaon – will now see further development independently by Tata Motors.

Tata Gains Engine Development Freedom Without Owning IPR

Under a newly signed Technology License Agreement in Q4 FY25, Tata Motors Passenger Vehicles (TMPV) has received the rights to carry out technical changes and performance improvements to the 2.0L diesel engine, internally referred to as FAM B. While Stellantis retains the engine’s Intellectual Property Rights (IPR), Tata now has full authority to recalibrate, update, and adapt the engine for future regulatory norms and performance enhancements without needing approvals from Stellantis.

A spokesperson from Tata confirmed this development, stating the agreement allows TMPV to modify the engine to meet upcoming emission standards and to improve vehicle performance across the board.

Reduced Costs and Improved Flexibility for Tata

Previously, any upgrades – including ECU calibrations – had to go through Stellantis, incurring high costs. For instance, a single ECU calibration could cost up to €10 million, limiting Tata to just one power output: 168 bhp for both the Harrier and Safari.

With the new license, Tata Motors can now introduce multiple power variants, just as Mahindra does with its in-house developed 2.2 L mHawk diesel. This development will be crucial in maintaining competitiveness in the SUV space, where Mahindra offers wider powertrain options and drive modes across its range.

Strategic Move as Diesel Demand Continues in SUV Segment

Despite the global transition towards electric mobility, diesel engines remain in demand in the full-size SUV segment. The Harrier and Safari have faced stiff competition due to limited engine choices. With control over the 2.0 L diesel unit, Tata now has the flexibility to enhance performance and ensure compliance with future emissions at a much lower cost compared to developing a brand-new engine.

Tata engineers have long pushed to increase power to around 177.5 bhp but were previously limited by Stellantis’ control. This licensing deal now removes those bottlenecks, allowing Tata to move forward swiftly with performance upgrades.

Engine Production to Remain at FIAPL

Despite the new development rights, production of the engine will continue at FIAPL, serving both Tata and Stellantis. However, any changes or upgrades developed by Tata will be proprietary to them. It remains unclear if MG Motor India – which also uses the same 2.0L engine in the Hector – will get access to these updates, especially with MG expected to discontinue diesel offerings by 2026.

Final Thoughts

Instead of investing heavily in building a new diesel engine, Tata has smartly opted to license and build upon a proven powertrain. The 2.0L Multijet II may not be the latest in diesel tech, but with Tata now in control of its development path, it remains highly relevant for India’s SUV market. The move is expected to enhance Tata’s competitive edge by enabling faster, more cost-effective engine upgrades tailored to market and regulatory demands.

Source: Autocar India