Tata Motors will bid for an Indian Army contract to supply 1,000 bullet-proof light trucks
Tata Motors will bid for an Indian Army contract to supply 1,000 bullet-proof light trucks
Tata Motors Ltd., India’s largest vehicle maker by revenue, will bid for an Indian Army contract worth about 3.5 billion rupees ($75.8 million) to supply 1,000 bullet-proof light trucks in what is likely to further expand the auto maker’s presence in the rapidly growing defense equipment market.
“The company is offering vehicles valued at INR3.5 million each,” V.S. Noronha, head of defence business at Tata Motors, told a news conference. “We are competing with all local vehicle manufacturers for the Indian Army contract.”
Local vehicle makers Mahindra & Mahindra Ltd. and Ashok Leyland Ltd. also supply trucks and buses to the Indian Army.
“Defense brings in big business for us,” Ravi Kant, vice chairman of Tata Motors, said. “From supplying a couple of vehicles we have graduated to supplying a host of solutions.”
India has earmarked 1.42 trillion rupees ($30.5 billion) as capital expenditure on defense for the current fiscal year through March 31, up from 1.06 trillion rupees in the previous year. The federal government is in the process of upgrading its armed forces by floating tenders for the purchase of new vehicles, arms and fighter jets as part of the modernization exercise.
Mr. Noronha said Tata Motors is also participating in the upgrading and overhaul program of the Indian Army’s T-72 tank and its futuristic infantry combat vehicle as a system integrator.
Tata Joined with U.S. defense corporation Raytheon Co. to upgrade the Russian-made T-72 tanks
Earlier Tuesday, engineering company Larsen & Toubro Ltd. said it has joined with U.S. defense corporation Raytheon Co. to upgrade the Russian-made T-72 tanks. Raytheon will provide infrared imaging sights and electronics to improve the quality of the battle tanks, while Larsen will provide fire control systems and sensors.
Tata Motors Monday introduced a new mine protected vehicle, which it plans to offer to the army, paramilitary and police forces.
Mr. Kant said Tata Motors is looking at several options for selling a stake in its vehicle finance arm, however, he didn’t specify the purpose of the fund-raising.
Earlier Tuesday, Mint newspaper, citing two unnamed people, reported that State Bank of India may buy a 49% stake in Tata Motors Finance Ltd., the vehicle financing unit of Tata Motors.
Mr. Kant declined to comment on the report.
“We do not comment on any particular news story. As we have previously said, we are looking at various options at offloading a stake (in the vehicle finance arm),” Mr. Kant said.
Tata Motors’ president of commercial vehicle business, Ravi Pisharody, said the company may raise prices of its trucks and buses by 1%-2% due to the implementation of new emission rules.
“New emission norms require new technologies, therefore the prices will have to go up,” he said.
India will adopt Bharat Stage IV emission standards that are equivalent to the Euro-IV standards in 13 of India’s biggest cities by April 1. Auto makers are required to invest in upgrading their vehicles to comply with the rules.
source: wsj.com
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