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Tata Acquires Licensing Rights For In-House Development Of 2.0-Litre Diesel Engines; Diesel Power To Continue In SUVs

Such licensing would help Tata streamline and reduce the bottlenecks and costs that came with external approvals and development- Further Details Below-

Just when we had thought that the EV reign was set to write a new chapter in the overall genesis of Mobility Tata has revealed their long term plans to continue to produce the Diesel Engines. Tata motors has recently revealed that their powertrain strategy for the future includes attaining a license to produce and further develop Fiat’s 2.0 Liter Multijet II diesel engine. The engine already powers the Harrier and Safari SUVs. The engine is produced under license from Stellantis. 

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The rights to further develop the famed 2.0 litre diesel engines have been granted to Tata Motors, giving the company an independent control over the engine’s use, design changes, and upgrades. But the intellectual property rights still reside with the Stellantis group.

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What Could Be The Future Prospects of Such A Deal

As per a report by Autocar, it has been revealed that such a licensing deal would allow Tata upgrade engines independently to meet future emission norms and tailor power output. Diesel powertrains in the SUV segment still hold formidable demand and hence such changes would allow the manufacturer to easily diversify its line-up with new engine and powertrains. Such licensing would help Tata streamline and reduce the bottlenecks and costs that came with external approvals and development. 

The report further details how the licensing would give Tata significant power over instilling new upgrades and BS6 transition. This would allow Tata to calibrate ECUs differently and  offer varying HP figures to different variants in the line-up similar to that of Mahindra.  Such changes would help the brand offer better diversity across variants. 

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The arduous task to get approval from Stellantis and bear the excessive costs of approval beyond such changes restricted became a recurring issue due to restrictions.  With the new licensing deal Tata would now be able to produce the Engines in-house and easily acquire control of the engine. The freedom to be able to modify the engine internals and tuning without the hefty costs of owning the IPR would surely help Tata offer varying performance figures across segments with the same engine. 
Also Read: KTM RC 200 Update With A New TFT Display, Here’s How it Sizes Up Against Bajaj Pulsar And R15

First published on: May 27, 2025 01:22 PM IST


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