Tata Motors has secured the licensing rights for the 2.0-litre FAM B diesel engine from Stellantis under a License Technology Agreement in Q4 FY25. This agreement gives Tata full control over its future development, design modifications, and regulatory upgrades.
With the new rights, Tata Motors can now independently develop and enhance the diesel engine without relying on Stellantis. This will significantly reduce development costs and speed up implementation timelines.
Previously available only in a single 170PS tune, the engine could now be offered in multiple power states, similar to Mahindra’s approach. Tata can also refine engine mapping for better power delivery and overall performance.
Despite the overall market decline of diesel engines, this move positions Tata to better respond to regulatory changes and maintain competitiveness in the diesel SUV segment, especially with Harrier and Safari.
Tata Motors is also preparing to launch petrol variants of the Harrier and Safari by the end of 2025. These models are expected to use the 1.5-litre turbo-petrol engine first showcased at the 2023 Auto Expo.