In a significant milestone for automotive manufacturing in India, Tata Motors has acquired independent development rights to the 2.0-litre FAM B diesel engine, which currently powers its flagship SUV portfolio, the Tata Harrier and Safari.
Previously, all development and upgrades for this component and engine family required approvals from Stellantis, the international automotive conglomerate responsible for the design of the motor.
Now, Tata has the ability to make modifications, changes or research and design entirely new variants of this engine in a more robust way without navigating through Stellantis and their costly and inefficient approval timelines that were necessary before. This is a significant enhancement to the Tata long-term engine philosophy.
Engine Evolution: What This Means for Harrier & Safari
The FAM B 2.0L diesel engine, originally procured through the joint venture with Fiat India Automobiles Pvt Ltd (FIAPL) at Ranjangaon, will still have the same intellectual property - it's still owned by Stellantis.
However, under the new licensing agreement, Tata can now tune, improve, and develop the engine without needing approval from Stellantis.
Previously, any minor changes - such as ECu, or calibration - would appear to cost at least EUR 10 million (almost Rs 97 crore). By removing that dependency, Tata can now offer variants at a more affordable price and evolutions quickly.
More power, more choice
With this new license Tata Motors is likely to offer various versions of the engine, as well; likely with a more powerful 180 bhp version in the top end Harrier and Safari variants and a lower tuned 150 bhp engine for either the entry or mid-level versions, in order to offer a competitive price point with variations. This is similar to Mahindra's approach across their SUV portfolio.
Future-Proofing Tata’s Diesel Strategy
This strategic transition creates performance flexibility, while also helping to future-proof Tata's vehicles. The engine is now upgradeable to compliance with future emission regulations, allowing Tata to propagate the diesel life in an increasingly EV-dominant marketplace without having to redevelop a new engine platform.
This re-engineering makes future good business sense and puts Tata in an enviable position to respond quickly to shifting regulatory compliance and changing marketplace preference, while further solidifying the brand's unique position of strength in the highly competitive SUV space.
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