Fiat is busy developing a small two cylinder diesel engine of 800cc capacity. This engine is expected to drive Fiat's low-cost car for developing markets including India. The engine would be made at Fiat's Ranjangaon plant in India and would be sold to other manufacturers like Fiat's 1.3 litre multijet engine which is being sold to Suzuki for the Swift. Due to Tata-Fiat JV, the 800cc diesel engine will most likely be strapped on to the Tata Nano in due course of time enabling the Nano to give phenomenal mileage of around 30 kmpl on diesel. However Tata is rumored to be developing it's own two cylinder diesel engine for the Nano!

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Monitoring the automotive industry to keep you updated on the latest news, scoops and launches. Published by Udit Bhandari. IndiBlog is looking for contributors. If you are a petrol head and can write too, drop in a line to udit(at)indimoto(dot)com.