Tata Motors which is going roll out its cheapest car petrol Nano this year is now planning to introduce Tata Nano with diesel engines that have been developed by German power train maker FEV.

FEV, headquartered in Aachen, Germany, is a company that has independent engine and power train systems research, design and development. It is currently working for Mahindra & Mahindra for its electric-diesel hybrid Scorpio.

According to some of the sources in the auto industry, 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.

Tata’s petrol Nano comes with a 623 cc, two-cylinder and MPFI engine with 4-speed manual transmission. However the company has already proclaimed to introduce a diesel and even a hybrid that are in the pipeline.

During its premiere in the Auto Expo earlier this year, Tata Motors chairman Ratan Tata had said, “By and large we’ve always been a diesel company so we will have a diesel version that will follow this variant soon after.”

According to sources in the auto industry, “The car will sport the world’s first 800 cc, turbo charged, CRDi diesel engine. The diesel power train Nano will mostly roll out in 2009. While Bosch is working on the CRDi system for the Nano and the Honeywell Turbo India is working on the turbo charger.”