Bosch develops diesel engine for Nano

German auto component major Bosch said on Monday it developed a special diesel engine in partnership with Tata Motors, the makers of the Rs 1-lakh car Nano.

"We have developed the 1.1-common-rail-system for the Tata Nano diesel (version). The system will also be produced locally," Bosch Automotive Group chairman Bernd Bohr told reporters in New Delhi on Monday.

He said the company has partnered the Tata Nano project for the front and rear drum-brakes, the starter, the alternator and fuel injection system, which could help reduce the number of components required in the world's cheapest car commercially launched last March by the country's largest automobile maker.

"The reduced number of components required for both these systems makes it possible to keep costs low," he said, adding, "thanks to the efforts of our international team of engineers, we have developed a broad portfolio of systems and components for the Nano."

The company said despite the recession in global markets, it has invested over Euro 3 billion (Rs 20,000 crore) in 2009 particularly in developing technologies for the low- priced vehicles to improve fuel efficiency.

Bohr said the growth of Indian automobile industry would be primarily be driven by the diesel engines.

"The diesel engine is set to see strong growth in Asia's emerging markets, and will be particularly in demand in India," he added.