The Tata Powertrain (TPG) Group is building its latest diesel engines in India with a focus on lower emissions.
TPG plans to build 10 engines at its plant in Goa with a price tag of about Rs 100 crore ($1.1 billion).
In terms of powertrain components, TPG is looking at eight-cylinder diesel engines, eight- and 16-cylinders and eight-speed transmissions for the new Tata Nano, which is scheduled to be rolled out in 2021.
The diesel engines will be powered by two turbochargers and four electric motors, and are expected to be priced at about Rs 20,000 ($3,500) per unit.
In the diesel engine segment, Tata Power has been using a hybrid system, but has only recently been introducing a turbocharged petrol engine.
It is expected that Tata Power will offer two diesel engines for the Nano, and two petrol engines for its two-wheelers.
The other major diesel engine group in India is the Tata Power unit.
TPG has been developing diesel engines from the ground up, using advanced technology, and is building new models that are more efficient.
It has invested Rs 50 crore ($6.8 billion) into a diesel engine unit in Goan in the last two years, including a Rs 12.4 crore ($3.2 billion) investment in the Tata Nano.
This is the fourth time that TataPower has invested in the Goan plant.
The plant has also received a major Rs 2,500 crore ($4.8 million) injection of its own funds.
Other major diesel power plants in India include the Mahindra unit in Pune, the Mahinikandh plant in Andhra Pradesh, and the Bharat Dhar-Vijaya power plant in Maharashtra.
The Tata Nano will have two diesel units, while the Mahayati power plant is expected to have two-cylindered diesel engines.