Tata Motors will strap on a diesel engine developed by FEV on the Nano. The small diesel engine will have fuel injection systems developed by Bosch, but the rest of the platform is being developed by Tata Motors and FEV.
Although Tata Motors has so far only showcased its petrol Nano, it has already announced a diesel and a hybrid version which are in the pipeline.

The diesel Nano will sport 800 cc, turbo charged, CRDi diesel engine and will be rolled out in 2009. While Bosch is working on the CRDi system for the Nano, Honeywell Turbo India is working on the turbo charger.

The 800 cc, turbo charged, CRDi diesel engine will be two-cylinder and crank out at least 30% more mileage compared to 800 cc petrol cars.

Naturally aspirated diesels are now virtually extinct in India because they are not Euro 4 compatible which will be the mandated emission norm by 2010. Companies are replacing naturally aspirated diesels with turbo charged CRDi diesel engines.