Tata Motors has taken a significant step in its powertrain strategy by acquiring the license to produce and further develop Fiat’s 2.0-litre Multijet II diesel engine, which powers the Harrier and Safari SUVs. This engine is produced under license from Stellantis by Fiat India Automobile Private Ltd (FIAPL) – a joint venture between Tata Motors and Stellantis in Ranjangaon. The rights to develop this engine further have been granted to Tata Motors, giving the company independent control over the engine’s use, design changes, and upgrades, even though the intellectual property rights (IPR) still resides with Stellantis.
A Tata Motors spokesperson confirmed the development. “Tata Motors Passenger Vehicles (TMPV) and Stellantis have entered into a License Technology Agreement in Q4 FY25 under which TMPV has acquired licence from Stellantis which grants rights to carry out certain developments and technical changes in the FAM B 2.0-litre diesel engine for its own requirements. The licence basically covers development / modifications of the engine to meet the various upcoming regulations, etc. The license also enables TMPV to initiate activities for performance enhancements of the said engine that will lead to overall improvements in the vehicle performance.”
- Tata can now upgrade the engine without paying licensing costs
- 2.0-litre diesel could be offered in multiple states of tune
- Investment to upgrade Multijet engine is much less than developing a new one
Advantages of Tata acquiring 2.0 Multijet diesel engine licensing rights
Lower costs will allow Tata to upgrade to meet emission norms and offer more power outputs
The timing is critical. With the Harrier and Safari facing increased competition, the lack of powertrain options has been a handicap for Tata Motors. Now, with autonomy over the 2.0 Multijet diesel, Tata gains the flexibility to upgrade the engine independently to meet future emission norms and tailor power outputs. This is especially relevant as diesel, particularly in large SUVs, continues to see strong demand despite the broader shift toward electrification. The licensing deal effectively removes the bottlenecks and costs that came with external approvals and development.
This was published in Autocar India’s November 2024 issue.
Previously, any upgrades or calibration work had to go through Stellantis and came at a steep cost. In fact, just touching the ECU for any calibration change could cost as much 10 million Euros. These sky-high development costs restricted Tata to just a single calibration during the BS6 transition: a 170hp version used across the Harrier and Safari. Offering a second, lower-output 150hp variant – a common industry practice to differentiate variants – would have meant paying for a second calibration, pushing up costs further. As a result, Tata lost out on flexibility, especially when compared to arch-rival Mahindra.
Mahindra, with its in-house 2.2-litre mHawk diesel engine, offers a wide range of calibrations and power outputs – spread across the Thar, Thar Roxx, Scorpio N and XUV700 – and can even bundle in multiple drive modes. Tata, on the other hand, couldn’t afford these options due to the economics of its licensing deal.
Tata Motors had long wanted more from the 2.0-litre diesel. For the Safari and Harrier facelifts, which came in October 2023, engineers had been pushing to increase the mill’s output from 170hp to around 180hp to better match Mahindra’s mHawk mill. However, any such power bump meant going back to Stellantis – an exercise that proved both slow and expensive. Tata’s frustration grew as it became clear that with Stellantis in charge, any development of the powertrain wasn’t yielding results. The only viable solution was to bring development in-house by acquiring full control of the engine.
By taking full ownership of the engine, Tata Motors can now recalibrate the ECU at will, unlock new power outputs and work on future compliance upgrades without third-party costs or constraints.
Jeep Compass, Meridian will continue to use 2.0 diesel engine
Tata brands the 2.0-litre diesel as Kryotec.
However, there will be no change in the production agreement for the engine. A Tata Motors spokesperson has officially clarified, “It is pertinent to note that manufacturing of the engine will continue at FIAPL for both TMPV and Stellantis and IP of the basic engine rests with Stellantis, except for the development /modifications undertaken by TMPV, which will rest with the latter.”
What remains unclear is whether FIAPL’s other customer, MG Motor India, will have access to Tata Motors’ upgradation of this engine. The Fiat 2.0 diesel also powers the Hector, but it’s likely that MG may stop offering a diesel option altogether when the all-new Hector arrives sometime in 2026.
Compared to developing a new engine, updating 2.0 Multijet diesel requires a modest investment
Taking licensed control of the Fiat engine is a strategic coup for Tata. Developing a brand-new, large-capacity diesel from scratch would have been both expensive and time-consuming – especially with diesel’s long-term future uncertain. With this licensing deal, Tata Motors gains a strong, emissions-compliant base to build on, requiring only modest investment and less time to update.
The 2.0-litre Multijet II diesel was sold to OEMs globally through a customer-supply programme. FPT Industrial was also responsible for the most successful diesel in India, the 1.3-litre Multijet diesel that was once called the “national engine of India” for powering 24 models across five brands.
While the 2.0-litre isn’t new or state-of-the-art, it remains relevant for the segment – and crucially, Tata now has full functional control over it, thanks to a license that brings freedom without needing to own the IPR.
Also see:
Tata Altroz CNG to get an AMT soon
Tata Altroz facelift launched at Rs 6.89 lakh
Tata Harrier EV launch on June 3
