Over 90 percent of FCA India's profits come from supplying engines to other manufacturers.
From today's report in the Economic Times, it appears that FCA India has inked a contract with Maruti-Suzuki and Tata Motors to supply 2.2 lakh diesel engines over a three-year period.
While Maruti will take the lion's share and source 1.5 lakh units, the report states that Tata Motors will not source the 1.3L Multijet engine but rather 70k units of the 2.0L Multijet turbodiesel engine for the upcoming Tata Q501 and Tata Q502 SUVs.
The Tata Q501 will not be the only SUV to source power from the 2.0L Multijet engine; Jeep will launch the Compass in India in August, which is confirmed to get the 2.0-litre MultiJet II diesel turbocharged motor with 170+ hp. So expect the Tata Q501 to output figures that are class-leading for a Tata vehicle. As for the transmission, it could be paired to a 6-speed manual or automatic.
The Q501 is tipped to arrive in 2018 and is the next all-new SUV after the Tata Nexon. It will share the floor pan and some structural components with the Land Rover Discovery Sport, while the exterior and interior will be unique. Expect the Pratap Bose led design team to go to town with this vehicle.
The Tata Q501 will be positioned above the Tata Hexa, and rival the Hyundai Tucson, VW Tiguan, Honda CR-V, Jeep Compass and even full-size 7-seat models like the Toyota Fortuner and Ford Endeavour. A report in 2015 said Tata intends to export the vehicle to South Africa, Indonesia and West Asia.
Although it's too early to speculate, prices of the Tata Q501 could range between INR 19 Lakhs - INR 25 Lakhs (ex-showroom).