Tata Motors, is looking to clock nearly around Rs 4,000 crore in sales from the defense segment within three years. Tata Motors are hell bound to exploit the Make in India opportunity and to be in the business as the leader in the automobile industry.
The company's optimism stems from the Modi government's push into the defense manufacturing segment with greater participation from the private sector, domestic as well as foreign. India imports more than 70% of its defense needs, spending about $100 billion on such purchases annually.
The company has won a Rs 940-crore contract to supply 1,239 units of indigenously developed high mobility multi-axle vehicles (HMVs) to the Army. These orders are for 6x6 HMVs with material handling cranes, which will be executed over the next two years, Tata Motors vice-president for defense and government businesses Vernon S Noronha said.
"This Army order is a validation of our strategy and growth potential, for our durable and extensive range of defense vehicles, designed and developed with our evolving customers, including that of security forces across the world. As leading suppliers of mobility solutions to our security forces, we will shortly commence delivery of these high-mobility vehicles," Noronha said.
Noronha said that the company has a defense order for about Rs 1,500 crore, excluding the just-won an Army contract and that it will bid for the over 700 light armoured multi-roll vehicles and 100 wheeled armoured personnel carriers that the Army intends to procure.
Tata Motors also exports, range of specialised defense vehicles to the SAARC, ASEAN and African regions apart from the UN Peacekeeping Forces in Central and Western Africa and the Indian Ocean island nation of Male.
The Tata 6x6 high mobility all-terrain all-wheel drive vehicles which are developed indigenously, have completed a total trial duration of 25 months and demonstrated maximum performance in the most demanding conditions, Noronha said.
The company will be investing around Rs 3,000 crore in the capex this fiscal in its domestic business, while its cash-cow JLR is spending over $4 billion on capex.