Renault’s Chennai research unit is currently developing a 986 cc petrol engine along with their French counterparts in Brazil and Europe. The new B4D is an improved version of 0.8 liter engine to make its way into a car scheduled for launch in 2015-16.
Ford and Renault are both seeking low budget technologies so as to bring in lower priced models into India, a country where smaller and low budget cars are seen to be more in demand. Manufacture of small engines in India will see almost 30% cost effectiveness over other markets.
Ford Dragon engine range is expected to be ready by 2016-17. They will consist of 1.2l and 1.5l engines and Ford plans to produce about 1.5 million (15 lakh) units of these annually. India will be the main supplier supplying a total of around 6.1 lakh engines per annum, once the Sanand plant starts production. Currently, their Chennai unit has capacity to produce 3.4 lakh units annually. Besides being produced from India, Dragon engines will also be manufactured in China, Brazil, Europe and Russia. Using India as both manufacturing base for domestic sales and exports will see a significant reduction in unit costs. (Source)