Tata Motors Acquires Fiat’s 2.0 Multijet Diesel Engine, To Get More Power Output Options

Acquiring the license to manufacture and further develop Fiat’s 2.0-liter Multijet II diesel engine, which powers the Harrier and Safari SUVs, is a major step in Tata Motors’ powertrain plan. This mill is manufactured at Ranjangaon by Fiat India Automobile Private Ltd (FIAPL), a joint venture between Tata Motors and Stellantis, under license from Stellantis.

Even though Stellantis still owns the intellectual property rights (IPR), Tata Motors has been given the authority to further develop this engine, allowing the firm to independently control the engine’s use, design modifications, and upgrades.

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In Q4 of FY25, Tata Motors Passenger Vehicles (TMPV) and Stellantis signed a License Technology Agreement. Under this agreement, TMPV obtained a license from Stellantis that gives it the authority to implement specific technical advancements and modifications in the FAM B 2.0-liter diesel engine for its own needs. In essence, the license covers engine development and adjustments to comply with numerous forthcoming laws, etc. Additionally, the license gives TMPV the authority to start working on improving the performance of the aforementioned engine, which will raise the vehicle’s overall performance.

Now, Tata can improve the engine without having to pay for a license. Multiple states of tune could be given for the 2.0-liter diesel.
The cost of upgrading a Multijet engine is significantly lower than that of creating a new one.Benefits of Tata obtaining the license rights for 2.0 Multijet diesel engines Tata will be able to modernise to satisfy pollution standards and provide greater power outputs due to lower prices. Time is of the essence.

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Tata Motors has been hampered by the lack of powertrain alternatives as the Harrier and Safari face more competition. With control over the 2.0 Multijet diesel, Tata can now modify the engine on its own to satisfy future emissions regulations and customise power levels. This is particularly important since, despite the general trend toward electrification, diesel is still in high demand, especially in large SUVs. The licensing agreement successfully eliminates the expenses and delays related to outside approvals and development.

Although it was originally believed that Tata Motors would own the engine’s intellectual property rights (IPR), it is now known that the firm has just purchased the license rights; Stellantis still owns the IPR.

Upgrades and calibrations had to be done through Stellantis in the past, and they were quite expensive—just touching the ECU to make a calibration adjustment could cost up to 10 million euros. During the BS6 changeover, Tata was only able to produce one calibration because to the extremely high development costs: a 170 horsepower version that was utilised in the Harrier and Safari. It would have cost more to offer a second, lower-output 150hp type, which is a common business practice to differentiate variants. This would have required paying for a second calibration. Tata thus lost flexibility, particularly when compared to fierce rival Mahindra.

With its proprietary 2.2-litre mHawk diesel engine, Mahindra provides a variety of power outputs and calibrations throughout the Thar, Thar Roxx, Scorpio N, and XUV700. It can even combine several drive modes. Tata, however, was unable to afford these choices because of the license agreement’s economics.

For a long time, Tata Motors had higher expectations for the 2.0-liter diesel. In order to better match Mahindra’s mHawk mill, engineers pushed to boost the mill’s output from 170 horsepower to about 180 horsepower for the Safari and Harrier facelifts, which were implemented in October 2023. Any such power boost, however, would require returning to Stellantis, which proved to be a costly and time-consuming exercise. As it became evident that any powertrain development was failing under Stellantis’ leadership, Tata’s annoyance increased. Taking complete management of the engine and bringing development in-house was the only practical option.