Tata Motors gains control over Fiat's 2.0-litre Multijet diesel engine: Report
Tata Motors has made a significant breakthrough in its powertrain strategy by acquiring licensed development rights to the 2.0-litre Multijet II diesel engine, a move that grants the company freedom to upgrade and modify the engine independently, according to Autocar India. This engine currently powers the Tata Harrier and Safari SUVs and is produced at the Ranjangaon plant by Fiat India Automobiles Pvt Ltd (FIAPL) – a joint venture between Tata Motors and Stellantis.
While the intellectual property rights (IPR) for the engine remain with Stellantis, Tata Motors now holds full control over engine development, ECU calibration, performance upgrades, and emission compliance modifications for its own use. The development was first reported by Autocar India.
'Tata Motors Passenger Vehicles (TMPV) and Stellantis have entered into a License Technology Agreement in Q4 FY25 under which TMPV has acquired licence… enabling technical changes in the 2.0-litre diesel engine,' a Tata spokesperson stated. What changes with this deal? Tata can now recalibrate ECU settings and unlock new power outputs without seeking external approvals or paying hefty licensing fees.
The license enables Tata to meet upcoming emission norms and introduce multiple power tunes , a flexibility it previously lacked.
This also lowers the investment requirement significantly when compared to developing a new engine platform from scratch.
Previously, any calibration—even minor ECU tweaks—required Stellantis' approval and incurred steep costs, reportedly as high as €10 million. This restricted Tata to a single 170hp calibration during the BS6 transition. In contrast, rivals like Mahindra offer multiple tunes and drive modes using its in-house 2.2-litre mHawk diesel, giving them a competitive edge.
Tata had long aimed to boost the Multijet's output to 180hp, especially for the Harrier and Safari facelifts. However, Stellantis' involvement made such changes slow and expensive. Now, with development autonomy, Tata is positioned to bridge the performance gap with Mahindra and respond to evolving market demands more swiftly. No change to production, Jeep and MG remain unaffected (for now)
Tata has clarified that engine manufacturing will continue at FIAPL, supplying both Stellantis and Tata Motors, while IP rights for the base engine stay with Stellantis. Tata, however, will own the IP for its modifications.
Jeep models like the Compass and Meridian will continue to use the existing 2.0-litre diesel. The engine also powers the MG Hector, but it's unclear if MG Motor India will benefit from Tata's upgrades. Industry speculation suggests MG may discontinue the diesel variant by 2026.
Tata's move to acquire licensed control — rather than building a diesel engine from scratch — brings cost efficiency and agility at a time when the future of diesel remains uncertain. The 2.0-litre Multijet II, though not cutting-edge, remains relevant for large SUVs, and with this deal, Tata Motors now has the freedom to evolve it further.
The engine's lineage is notable — Fiat's 1.3-litre Multijet, dubbed the 'national engine of India,' once powered over 24 models across 5 brands. The 2.0-litre Multijet continues that legacy and, with Tata now at the helm of its evolution, it could fuel a new phase of diesel performance in India.
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