Fiat India signs new engine supply deal with Maruti and Tata
Fiat India will supply 70,000 units of 2.0-litre MultiJet diesel engines to Tata Motors.
It’s no secret that the only thing that has been working in favor of Fiat in India is its deals to supply 1.3-litre MultiJet diesel engines to various OEMs including Maruti Suzuki and Tata Motors. The Italian automaker may be struggling to sell its own cars in the country but its engines are still highly sought-after.
According to a recent report, Fiat India, a 50:50 joint venture between Fiat and Tata Motors, has singed new engine supply agreements with Maruti Suzuki and Tata Motors. As per the agreements, Maruti will receive 1.5 lakh units of the 1.3-litre MultiJet diesel motor which powers several of its brisk selling products. Tata, on the other hand, will receive 70,000 units of the larger 2.0-litre MultiJet oil burner which is set to power the upcoming Q501/Q502 premium SUVs (based on Land Rover platform).
Fiat India is preparing to invest thousands of crores at its Ranjangaon facility which currently manufactures the engines, Punto and Linea family in addition to Tata Bolt and Zest twins. The fresh investment will expand the plant’s engine manufacturing capacity to facilitate the new deals as well as equip it to manufacture Jeep’s new Compass (slated to enter production in June 2017).
The 2.0 liter diesel engine is a completely localized unit by FCA India. Not only it will be powering the Jeep Compass and Tata Q501/502 SUVs in India, but it will also be exported to countries in Europe, South East Asia and Australia.
Moving forward, the engine supply deals and Jeep’s sale performance would be key for FCA’s sustainability in India. FCA India has invested heavily for the same and would be hoping to gain a lot from these newly signed deals.