From the recent discussion, we observe that Tata Motors has gained the development rights for the FAM B 2.0L Diesel Engine from Stellantis. Tata Motors can now develop the engine and make upgrades without referring to Stellantis and waiting for their approval. This engine already powers Tata’s flagship SUVs, the Harrier and Safari.
Is Tata Making A New Engine?

To be clear, Tata Motors is not developing a new engine. The engine used in the current Harrier & Safari models is sourced from Fiat Chrysler Automotive, or Stellantis. It’s the FAM B 2.0 Multijet diesel engine. Tata Motors has now purchased rights to this engine, meaning they have greater freedom and flexibility to modify the engine as they please, and they no longer need to pay licensing fees to Stellantis.
Potential To Increase Power & Efficiency

Newly manufactured Tata Harrier and Safari models, which will be housing this engine, are expected to receive a more powerful version of it, offering about 180 BHP. This will be seen in the higher variants of the vehicles, and lower entry-level trims might feature a detuned version producing about 150 BHP. This strategy has also been seen in the other brand approaches, too, enabling brands to offer a wide range of performance variations in their product lineup.
Tata Motors no longer has to pay fees to Stellantis, the original developers of the engine. This move will save costs and time lost in the process of approval of any desired changes, reducing costs and allowing for greater flexibility and freedom when it comes to powertrain design.
Commitment To Diesel

As we are observing the EV transition in the Indian automotive market, Tata still continues to offer robust diesel options with their flagship SUVs like Safari and Harrier. Tata is also looking forward to the 1.5-litre petrol engine of their smaller cars, as the consumers of the smaller cars, like their hatchback Altroz and compact SUV Nexon, prefer petrol variants. Tata is trying to offer balanced powertrain offerings, including Electric, CNG, Petrol, and Diesel.