Tata Motors and Stellantis have signed a new Memorandum of Understanding (MoU) aimed at exploring further collaboration opportunities across manufacturing, engineering and supply chain operations. The announcement was made on the same day the two companies marked 20 years of their joint venture in India.
The companies did not disclose specific projects or timelines linked to the MoU. However, both confirmed that the agreement is intended to identify new areas of cooperation at both local and global levels.
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Two decades of joint operations in India
The MoU coincides with the 20th anniversary of Fiat India Automobiles Private Limited, the 50:50 joint venture between Tata Motors and Stellantis. The partnership operates the Ranjangaon manufacturing facility in Maharashtra, which remains a key production hub for both companies.
Over the years, the Ranjangaon plant has played a central role in engine and vehicle manufacturing for multiple brands. It currently produces the 2.0-litre Multijet diesel engine and also assembles vehicles such as the Tata Nexon and Jeep Compass for the Indian market.
Possible engine-sharing discussions
While the official announcement did not confirm any product-level decisions, industry sources indicate that the MoU may include discussions around engine sharing. Stellantis is understood to be evaluating Tata Motors’ 1.5-litre turbo-petrol GDI engine for use in its India-made SUVs.
This engine is being considered for models such as the Jeep Compass and the Jeep Meridian, both of which are currently offered only with diesel powertrains in India. A locally sourced petrol engine could help Jeep expand its powertrain options while aligning with tightening emission norms.
For Indian buyers, the introduction of a petrol option in these SUVs would widen choice and could improve accessibility in markets where diesel demand is declining or restricted.
Existing technology exchange
The potential engine collaboration follows a recent technology agreement between the two companies. Tata Motors has acquired licensing rights from Stellantis to independently develop the 2.0-litre Multijet diesel engine for use across its model range in different states of tune.
This diesel engine, also produced at the Ranjangaon facility, currently powers several SUVs including the Tata Harrier, Tata Safari, Jeep Compass and Jeep Meridian.
What happens next
At present, Tata Motors and Stellantis has not confirmed whether the new MoU will result in production-ready outcomes or model updates in the near term. Any engine-sharing arrangement would require further validation, localisation work and regulatory approvals before market introduction.
The companies have stated that more details will be shared as discussions progress, keeping the focus on strengthening long-term collaboration in India.
Disclaimer: Details in this report are based on official statements and industry information available at the time of publication. Future product plans and technical decisions are subject to regulatory approvals and company confirmation.
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Raj Prajapati is a senior automobile content writer at How2Guidess.in with over 3 years of experience in auto news, vehicle launches, comparisons, and EV updates. With a background in Computer Science & Engineering, he focuses on research-based, clear, and reader-friendly automobile content.