Tata Motors has acquired the licensing rights to develop Fiat’s 2-litre Multijet II diesel engine in-house. This engine, which powers models like the Jeep Compass, Meridian, Tata Harrier and Safari, is known for its strong mid-performance and solid reliability. Currently, in India, this engine is assembled locally by Fiat India Automobiles Pvt Ltd – a joint venture between Stellantis and Tata Motors, at their Ranjangaon facility near Pune.
The right to develop this engine further has been granted to Tata Motors, giving the company independent control over the engine’s usage, design changes and upgrades – even though Stellantis still retains the intellectual property rights (IPR). With these licensing rights, Tata now gains greater flexibility and control over the powertrain, potentially reducing dependency on 3rd-party suppliers and paving the way for more cost-effective diesel offerings in the future.
Earlier, Tata had to rely on Stellantis for any changes to the 2.0L diesel engine, and even small updates — like ECU calibration — could cost up to €10 million. Due to these high costs, Tata only went with one engine tune (170hp) for both the Harrier and Safari during the BS6 phase. A lower 150hp version, commonly used to differentiate variants, was dropped to avoid extra expenses. In contrast, its key competitor, Mahindra, with its in-house 2.2L mHawk engine, offers multiple power outputs and drive modes across its lineup — including the Thar, Scorpio N, and XUV700. Tata couldn’t match this flexibility earlier.
Now with this deal in place, Tata Motors can now recalibrate the ECU, introduce new power outputs, and handle future emission upgrades — all without relying on or paying third parties.
The engine will still be manufactured at the Fiat’s plant for both Tata Motors and Stellantis. While Stellantis owns the core engine design, any changes or upgrades made by Tata will be owned by Tata. What’s unclear is whether MG Motor India — another customer using this engine in the Hector — will get access to Tata’s updates.
