Tata Motors Acquires Licensing Rights to Aid in Developing a More Powerful Diesel Engine Configuration for its SUV Range

The 2.0-Litre Multijet II: A Strategic Collaboration
The 2.0-litre Multijet II diesel engine, developed by Fiat Chrysler Automobiles (now part of Stellantis), is a robust powertrain known for its performance and efficiency.
In India, this engine is manufactured at the Ranjangaon facility in Maharashtra, operated by FIAPL—a 50:50 joint venture between Tata Motors and Fiat. This collaboration allows Tata Motors to source the engine for its vehicles without an outright acquisition.
Mahindra, with its own 2.2-litre mHawk diesel engine platform, offers a wide range of calibrations and outputs.
The versatile mHawk platform features in 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 which proved to be a major setback in their ability to compete with their heavy-weight rival.
Now, Tata Motors has been granted the rights to develop this engine further, giving the company independent control over its use, design changes, and upgrades.
The Stellantis conglomerate still owns the Intellectual Property Rights (IPR) to the 2.0-litre Multijet II platform.
How does this benefit Tata Motors?
- Tata can now upgrade the engine without paying licensing costs.
- The 2.0-litre diesel engine can be offered in multiple configurations and tuning.
- Instead of developing a new diesel powertrain platform, Tata can use this platform in future development.
- Tata now has more diesel engine options that follow the BS6 emission norms, which can be offered to customers.

Image Credits: Motoroids
About the Platform:
The 2.0-litre Multijet II engine is a four-cylinder turbocharged diesel unit equipped with common rail direct injection and a variable-geometry turbocharger.
In the Tata Harrier and Safari facelift versions, it produces around 170ps @ 3750rpm with a peak torque of 350Nm @ 1750- 2500rpm.
The same engine powers other vehicles in the Indian market, such as the Jeep Compass and MG Hector, albeit with different tuning and branding.
Tata Motors' Vision:
Lower costs will allow Tata to upgrade the engine platform to ensure that it meets the stringent emission norms.
With the Harrier and Safari facing increased competition from rivals such as Mahindra, the dearth of powertrain options has been a drawback for Tata Motors.
Now, with autonomy over the 2.0 Multijet diesel platform, Tata gains the flexibility to upgrade the engine independently to meet future emission norms and custom power outputs.
This is particularly significant as diesel engines—especially in large SUVs—remain in strong demand despite the broader industry shift toward electrification.
The licensing agreement streamlines the process by eliminating the delays and expenses typically associated with external approvals and in-house development.
Other vehicles that use this platform, like the Jeep Compass, Meridian and MG Motors, will continue to use it, though there is a cloud of uncertainty whether they will be allowed to use the Tata upgraded engines in the future.
However, there will be no change in the production agreement for this engine.
"It is pertinent to note that manufacturing of the engine will continue at FIAPL for both TMPV and Stellantis, and the IP of the basic engine rests with Stellantis, except for the development/modifications undertaken by TMPV, which will rest with the latter.” ~ Tata Motors
While this particular engine platform isn't new or technologically advanced, it is a crucial step by Tata to further develop an updated or advanced package to improve their standing in the highly competitive diesel SUV market.
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