Fiat’s ubiquitous 2.0-litre Multijet diesel engine has been powering the Tata Harrier and Safari since launch. Tata Motors has been building the engine under license from Stellantis by Fiat India Automobile Pvt. Ltd. at its Ranjangaon plant. Now, the company has acquired the rights to develop this engine further. According to a media report, Tata Motors and Stellantis have entered into a License Technology Agreement in Q4 FY2025 under which Tata has acquired license 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. It will enable the company to further develop and modify the engine to meet upcoming regulations and also make performance enhancements. Tata will no longer have to wait for external approvals to make changes to the engine. The company will also be able to upgrade the engine without paying additional licensing costs. It is said that an ECU calibration could cost as much as 10 million euros. Such steep costs meant Tata did not have the flexibility to differentiate variants by offering a lower engine tune, something Mahindra was able to capitalize on with its in-house 2.2-litre mHawk diesel engine. With the new agreement, Tata will be free to develop the 2.0-litre mill without additional licensing costs or constraints. That being said, there will be no change in the production agreement for the engine. The IP of the basic engine rests with Stellantis, except for the development undertaken by Tata Motors. Source:Autocar India
