Fiat inks fresh engine deal with Maruti Suzuki & Tata Motors

Fiat India has signed a fresh engine supply deal with Maruti Suzuki and Tata Motors. Under this new deal, Fiat has received a contract to supply 2.2 lakh diesel engines to the aforementioned automakers, in the next three years.

Maruti Suzuki has placed an order of 1.5 lakh units of the 1.3-litre, four-cylinder Multijet engine. This power plant is used in a wide range of cars in Maruti's portfolio, including the Swift, Dzire, Ignis, Baleno, Ertiga, Vitara Brezza, Ciaz and S-Cross.

Meanwhile, Tata Motors will be sourcing 70,000 units of the 2.0-litre, four-cylinder Multijet diesel engines from Fiat. These engines are expected to be used in Tata's upcoming range of SUVs that are being developed on the Land Rover platform. The first of these SUVs, internally codenamed as the Q501, is expected to be launched sometime next year.

It is being reported that Fiat will be investing in its Ranjangaon, Pune-based plant to ramp up engine production. In its current state, the Ranjangaon facility is expected to run out of capacity by next year, owing to increased load from manufacturing of the Jeep Compass and Tata's new products, including the upcoming Nexon compact SUV. This particular plant, which was built under the Fiat-Tata Joint Venture, is currently responsible for production of the Fiat Punto and Linea and the Tata Bolt and Zest.

Source: ET