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Tata Motors is set to improve the performance of its popular SUVs—the Harrier and Safari—after getting the licence to upgrade and develop the Fiat 2.0-litre diesel engine. This engine is currently used in both models and is made at the Ranjangaon plant, run by a joint venture between Tata and Stellantis.
With this new licence, Tata now has more control over how the engine performs and meets future rules, even though the engine’s original design still belongs to Stellantis.
Tata Motors has confirmed that the new licence, signed in Q4 FY25, allows the company to make changes to the engine’s software, boost performance, and meet future emission rules. This means the Harrier and Safari could soon get more powerful or differently tuned engine options.
Tata can now make these updates on its own, saving time and money that was earlier spent getting approvals from Stellantis.
This new freedom means Tata can now offer more power options for the Harrier and Safari. The company had been planning to increase the engine’s power from 170hp to around 180hp but was held back by costs and delays. Now, these upgrades can be done easily in-house.
Tata may also introduce a lower-power version, giving buyers more choice—just like Mahindra does with its 2.2-litre diesel engine used in the Thar, Scorpio N, and XUV700.
Even though Tata now controls development, the engine will still be made at the same FIAPL plant for both Tata and Stellantis. Tata will only own the rights to the changes it makes. Stellantis will still own the base engine design.
It’s not clear yet if MG Motor India, which uses the same engine in the Hector, will be able to use Tata’s updated version. MG may even stop offering diesel in the next-gen Hector expected in 2026.
Tata’s move saves both time and money. Instead of building a new engine from scratch, Tata now has the rights to upgrade an existing, reliable diesel engine. This is important because diesel still plays a big role in India’s SUV market, even as electric vehicles grow in popularity.
Also Read: 2026 Kia Seltos to Debut with Hybrid Engine and E-AWD Globally, India-Spec May Differ
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