Armored PDF

Defence IQ
ARMOURED VEHICLES
MARKET REPORT 2017
sponsored by
CONTENTS
Executive Summary 4
Survey Analysis 5
Regional Developments 20
Europe
North America
Middle East
Asia-Pacific
Africa
Latin America
International Armoured Vehicle Review 66
Military Insight 68
Credits 76
About Defence IQ / Disclaimer 77
International Armoured Vehicles

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2 Twickenham Stadium , London, UK
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The defence market
FOREWORD
sponsored by NIMR Automative
is becoming more
sensitive to cost and
value for money
In 2016 we have continued to see hotspots of unrest and conflict across the world, particularly in the Middle East and North
Africa region, and there are few indications that these will abate in 2017. Conflict is unpredictable and asymmetric in nature
and, in responding to these threats, armies across the globe are expecting their armoured vehicle fleets to provide the
backbone of their ground based fighting capability. Versatile and flexible in use, armoured vehicles provide the protection and
mobility for the deployment of troops, sensors and weapon systems. They deliver the military capability and troops on the
ground where and when they are needed.
At NIMR, we closely monitor market trends to ensure we are ready to meet the emerging demands of our customers. With
this in mind, we welcome the annual Global Armoured Vehicles Market Report and are delighted to introduce the 2017
Report. Launched ahead of the series of armoured vehicle conferences, the report identifies the trends within the sector that
will shape the market activity for the coming year. We expect to see continued growth in the demand for vehicles from the
international market, both for new capability and to replace some ageing fleets.
The modern battlefield sets a variety of challenges, demanding high levels of operational and tactical mobility alongside
protection for crew and mission systems. At NIMR we believe firmly these requirements can be best provided by a range of
multi-role wheeled vehicles. These versatile platforms can be rapidly deployed over large distances to respond to new threats,
whilst also providing tactical mobility in demanding terrain along with high performance as a fighting platform.
Protecting our soldiers remains our highest priority and the most significant trend. Whilst the threats continue to grow
stronger, especially from IEDs and the proliferation of RPG and similar weapons, a mixture of responses is needed to deliver
this protection. Physical measures alone do not ensure survivability, and consequently NIMR has developed a range of other
characteristics to improve survivability. We firmly believe that tactical mobility across all types of terrain can deliver a critical
advantage and accordingly our platforms are designed to achieve the highest levels of mobility. Fightability the ability to use
the vehicle as a fighting platform is also a high priority and the seamless integration of mission and weapon systems onto the
vehicle is a critical success factor.
With a global economic slowdown and reduced oil prices, the defence market is becoming more sensitive to cost and value
for money, both in terms of acquisition and through life costs. This is another area where NIMR aims to lead the market, with
a range of multi-role wheeled vehicles with low initial cost and, importantly, low through life costs achieved by a mixture of
platform commonality and reliable performance. This also delivers a lower logistic footprint with benefits in terms of reduced
resupply and simpler training and support.
We at NIMR look forward to seeing you at the International Armoured Vehicles conference and throughout 2017 at the
subsequent conferences held across the globe. These events provide an excellent opportunity for discussion with expert
speakers and representatives from both industry and Governments. I recommend this years Global Armoured Vehicles
Market Report to you as a starting point for what promises to be another interesting and challenging year for armoured
vehicles.
Dr. Fahad Saif Harhara

CEO
NIMR Automotive

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EXECUTIVE SUMMARY
From UK shores, 2016 has been dominated by the Eastern Europe and Asia-Pacific, regions that will drive
referendum to leave the European Union and the market growth. Like last year, the threat of landmines and
uncertainty that has flowed from that momentous IEDs remain at the top of the list of concerns, only now,
decision. By the beginning of next year, we may know a wider spectrum of threats including directed energy
more about what this actually means for the UK and and CBRN attacks are no longer considered low-priority.
Europe, but uncertainty is likely to complicate the UKs Indeed, the rise in technological sophistication across
Defence Programme. We will certainly know the outcome battlefields worldwide is forcing even more of armoured
of the US Presidential Election the new incumbents vehicle capabilities.
inauguration will take place in January but we will still be
in relatively uncharted waters. New relationships, notably Meanwhile, defence budgets fluctuate, strategies adapt
with Russia and China, as well as with and within Europe and force structures are realigned. The only way to stay on
will be required. Meanwhile, there has been no let-up in top of these changes is to continue to communicate with
the uncertainty and instability caused by global terrorism, others in the field, to intelligently observe the emerging
especially in mainland Europe where unprecedented threats, and to absorb reliable market intelligence.
migration has heightened the severe security challenge.
On the back of these developments, Defence IQ invites
Within this broad strategic context, conventional tensions you to join us and so many others from across the globe
and conflicts across the world also claim our attention. at next years International Armoured Vehicles Conference,
In Europe, NATO is routinely deploying armoured to be held at Twickenham Stadium, London, 23-26 January
formations in Poland, Ukraine and the Baltic States to 2017. Now in its 17th year, the Conference will bring
deter any further Russian inspired instability or aggression. together practitioners, providers and wider stakeholders to
Throughout North and West Africa and the Middle East, take an in-depth, contemporary look at armoured vehicles
conventional forces are pitted against asymmetric threats in the Defence and Security context.
and terrorism, stimulated, for the most part, by Islamic
Fundamentalism. Significant casualties continue to result This event offers an unparalleled opportunity to share
from wars in Mexico, Somalia, South Sudan and Yemen. these varied experiences in this vital field, at a venue
Such conflicts highlight the roles armoured vehicles play in that offers the space to exhibit, confer and network with
protecting people, delivering mobility and lethality, but also a wide variety of international colleagues on one site.
expose their vulnerabilities and the challenges in training Whether you are a military practitioner, acquisition staffer,
and sustainability. decision maker, programme manager, technical expert,
industrial supplier or strategic leader, I believe you will all
In this edition of Defence IQs annual Global Armoured benefit considerably from attending and look forward to
Vehicles Market Report, the latest survey data and analysis welcoming you to Twickenham early next year.
once again demonstrates that the market in the face of
fluctuating economies and an unpredictable operational In the meantime, we hope this report offers you a useful
environment is always uncertain. However, elements context.
of regional growth and shrinkage can be forecast with
a degree of confidence. On a global scale, Defence IQ The Defence IQ Team
estimates that the armoured vehicles market will reach
$15.17bn in 2017.
After a brief period of decline in confidence two years

ago, following the withdrawal from Afghanistan and the
expectations that land warfare would be far from our
minds for some time, the market has rebounded with
the emergence of political instability in the Middle East,

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SURVEY
SURVEY ANALYSIS
ANALYSIS

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This section of the report is based on an exclusive Defence IQ survey of senior executives and professionals within
the armoured vehicle domain, which includes commercial and military (currently serving and retired) respondents.
The analysis of the survey data has been supplemented with proprietary interviews and desktop research.
Defence IQs Global Armoured Vehicle Market Report is now in its sixth year, meaning the data in this report has
been analysed within the context of recent developments and offers a reliable framework for the future trends of
the armoured vehicle market.
Topics examined include; the key emerging regional markets, global procurement requirements, the primary
challenges facing armoured vehicle manufacturers over the next decade, armoured vehicle design requirements,
and the new normal in the industry as the effects of the global financial crisis begin to wane and new
opportunities emerge.
1. Analysis of respondents by type

Please select which of the following categories best describes your current role with
armoured vehicles.
7%
Commericial organisation (vendor)
Goverment organisation
25%
42% Military
Media / academic
11%
The largest segment of survey respondents (42 percent) 35 percent of all respondents and 15 percent identifying
derived from the commercial sector, which is a decrease themselves as government employees or from related
of 15 percent on the number of respondents from organisations. Individuals from defence academia and
industry in last years Global Armoured Vehicle Market the media accounted for the remaining 7 percent of
Report. This variance is due to an increase in end-user respondents.
participation, with military respondents accounting for

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2. Overview of Respondents by REGION INTEREST
What is your primary region of interest with regards to armoured vehicles?
8% 10% Africa
12% Asia-Pacific
17%
Europe
Middle East
20%
North America
33% South America
This report represents a similarly diverse and regionally increasing interest in the armoured vehicle market, Figure
measured level of response as last years analysis, with 2 is more a reflection of the make-up of Defence IQs
the majority of participants working within or focused membership base than any particular insight into wider
on regions outside of Europe and North America. armoured vehicle trends please consult the data in
Participation from the Asia-Pacific (17 percent) increased Figure 4 for target markets and regional growth potential.
on last year, perhaps indicative of the climbing market The graph above is only designed to give the reader an
in that part of the world. However, Europe also saw an understanding of which geographies the data is collected
increase in proportional response, accounting for 33 from and should be considered within this regional
percent, up 7 percent. Again, this appears to correlate context. A number of graphs and figures in this report
with the rebounding fortunes of the European market have been broken down into their regional responses but
particularly in Eastern Europe with rising demand for the majority are taken as a global response.
land systems in the wake of continued fears of Russian
aggression and security pressures on NATOs southern
frontier. It should be noted that while this data can go
some way to indicating which regions are seeing an

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3. Overview of Respondents by REGIONAL PROSPECTS
How confident are you in the future of the armoured vehicle market in your region over the next 10 years?
GLOBAL
Very confident 42%
Quite confident 43%
Not confident 8%
Unsure/no opinion 7%
AFRICA ASIA-PACIFIC
Very confident 58% Very confident 50%
Quite confident 37% Quite confident 41%
Not confident 0% Not confident 9%
Unsure/no opinion 5% Unsure/no opinion 0%
EUROPE MIDDLE-EAST
NORTH AMERICA LATIN AMERICA

Overall, confidence in the global armoured vehicle market to robust faith in the regional market. However, this still
is near level with last years statistics which were found to equates to a massive 91 percent of responses.
be at a five-year high. While the percentage is marginally
lower than 2015-16, 42 percent of respondents stated Steadily increasing budgets, new contract opportunities,
a firm assurance in order books over the next decade, and the growing intensity of local conflict saw the Middle
marking a 9 percent bump from where the result stood in East gain the biggest jump in market confidence, with 63
2014 when just a third of our participants identified being percent feeling particularly buoyant about future business.
very confident in the future of the market. Not a single respondent from this region declared
anything but confidence here.
Of note, North America dropped lost its status as the
dominant market influencing global opinion, with only 30 The same cannot be said of Europe or Africa, both
percent of participants centred in this region indicating of which are still registering high levels of confidence
a robust confidence (compared to 47 percent last year). (between 75-95 percent on average), but in a more
This is still an improvement on two years prior when measured stance the former down 4 percent on very
confidence in the North American market tanked as half confident; the latter down 10 percent on the same figure.
of respondents claimed to have no faith in the sector.
A number of high profile government contracts and One of the clearest signs of self-assurance is being
investments not least the $30bn Joint Light Tactical (JLTV) decisive; sitting on the fence rarely inspires confidence.
programme, which was awarded to Oshkosh Corp. has With this in mind, the number of respondents stating
seen confidence in the worlds largest armoured vehicle they were unsure about the market outlook rose from
market stay afloat with 48 percent still declaring a fair level 3 percent in the 2016 report to 7 percent in 2017. While
of confidence. confidence in the market is yet to return to the levels of
buoyancy, recovery has been established and industry
Latin America saw little change in assurance levels, with is beginning to heavily invest in future capabilities and
marginal gains in confidence in spite of ongoing economic infrastructure. That said, there is a significant air of caution
and political uncertainty across the region. Likewise, the represented in this data, perhaps highlighting the fact that
Asia-Pacific seen by most analysts as driving the future the market for the year ahead is reliant on many external
of the market over the next ten years saw little gain on and unpredictable factors.
last year, landing exactly level on those expressing fair
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4. Overview of key armoured vehicle growth markets
Which countries present the greatest potential for growth and will be
targeted as a priority over the next 10 years?
Afghanistan 23%
Australia 20%
Brazil 12%
Canada 4%
China 22%
Colombia 9%
Finland 4%
France 17%
Germany 20%
India 35%
Iraq 31%
Israel 30%
Japan 12%
Malaysia 12%
Mexico 4%
Netherlands 4%
Nigeria 18%
Norway 5%
Pakistan 21%
Poland 18%
Qatar 17%
Russia 18%
Saudi Arabia 36%
South Africa 9%
South Korea 17%
Sweden 2%
Thailand 7%
Turkey 35%
UAE 36%
Ukraine 24%
UK 20%
USA 33%
Central America 5%
Other Eastern European/Baltics 19%

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Saudi Arabia and the UAE topped the countries being of Jordan and Tunisia in efforts to counter insurgency.
targeted for armoured vehicles for the next decade, Meanwhile, the biggest margin of change from last years
with 36 percent of respondents declaring them priority report was seen in France, which saw a 9 percent jump.
nations. Both countries have been involved in operations A heightened domestic terrorism situation, alongside
in Yemen this past year, with announcements being made commitments to NATO, the EU and peacekeeping
at time of writing over continued efforts to be made in the operations all suggest that France will remain militarily
coming months. The faith in these nations to make new active at home and abroad over the next ten years.
armoured vehicles purchases or to produce their own
for local and international use is notable in that oil prices Despite being highly competitive and constrained by
have yet to recover and economies here are less assured budget and contractual hurdles in recent years, the US
than in recent memory. However, with insurgencies and maintained its position in fifth place among the most
power vacuums still peppering the Middle East, it is likely appealing regional markets, seeing a 4 percent increase
that governments in the West will seek to support the as international businesses continue to find opportunities
capabilities of both countries to ensure they remain pillars here.
of strength in the region.
New additions to this years report include Afghanistan,
India, once the runaway leader in this statistic, slips into Iraq, Japan, Ukraine and a collective option for the Eastern
second place with Turkey, but both nations offer solid Europe/Baltics, which naturally share similar budgets,
standings at 35 percent each. The concerns of each operations and pooling and sharing initiatives.
nation can be said to be very different between issues of
economic strength, internal stability, and cultural attitudes
but business is forecast to remain strong for both. Each
has a desire to keep the conveyor belts moving within their
domestic defence industries at this time, with government
initiatives focusing heavily on military manufacturing and
uncovering new export opportunities.
South Africa, Thailand, Sweden and Mexico all saw

significant decreases on last year.
Despite Europeans demonstrating strong confidence

in their home market, the global outlook for individual
markets remains modest when compared with the
powerhouse opportunities of the likes of China, the USA
or Israel. Perhaps unsurprisingly, Ukraine was seen as
Europes most viable candidate for armoured vehicle
business as the country continues to invest in upscaling its
forces while seemingly on the precipice of further conflict
with Russia. As with Saudi Arabia and the UAE, Ukraine will
continue to find monetary and diplomatic support from
Western nations wanting to maintain a strong front in the
region in the event of any warfare. Meanwhile, Polands
standing contracted slightly, while Germany jumped 6
percent in the rankings. Berlin has recently committed
to not only large purchases of vehicles for its own fleet
(including Boxer APCs), but also in assisting the likes

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5. Analysis of key armoured vehicle attributes
over the next decade
Please rate how critical you view the following attributes in terms of key armoured
vehicle requirements over the next 10 years.
Unimportant Somewhat important Very important Critical
Ballistic protection 2% 6% 47% 45%
Blast protection / counter-IED 2% 10% 41% 48%
Environmental control systems 3% 42% 44% 12%
Interoperable communications 1% 18% 47% 35%
Load carrying capacity 3% 35% 51% 12%
Mission range 2% 24% 59% 16%
Modular / interchangeable mission 4% 22% 52% 22%

role (adaptability)
Power/weight ratio 2% 17% 61% 20%
Reducing repair/maintenance costs 1% 22% 47% 31%
Speed/ maneuverability 1% 15% 59% 26%
Easily transportable 1% 30% 51% 18%
Reduced unit cost out of factory 2% 26% 51% 22%
Reliability 1% 3% 43% 53%
In the history of this report, protection has consistently and future theatre, keeping protective systems in this
been identified as a key attribute for armoured vehicles, category under high demand. The next most critical was
and this year is no different. What is different is that it has ballistic protection with 45 percent the same as last
been pipped to first place for the first time in six years year. Protection has again trumped speed (26 percent
by the need to prioritise reliability (with 53 percent of critical) and unit cost (22 percent) in the great survivability
respondents calling this a critical feature. While admittedly vs mobility vs cost debate. However, both of these latter
a vague term, its growing importance in this study suggests categories witnessed a year-on-year upswing, which were
a collective recognition that inventories are in need of not at 18 percent and 17 percent respectively in 2016.
only long-term service but must also show a capacity to
deal with a quickly evolving theatre of operations, wherein As with last year, load carrying capacity and environmental
many of the threats are becoming more numerous as control systems scored as the least important attributes.
well as more sophisticated. In efforts to reduce through- Interoperable communications climbed 5 percent,
life costs, government requirements for reliability also consistent with an increase in efforts to integrate vehicle
represent a step-change as vehicle integrators are working types within a fleet to deliver a timely and coordinated
hard to meet the new demands. response to a shared battlespace picture, as well as
efforts to ensure coalition-led operations do not suffer
IED and blast protection was said to be critical by 48 communication gaps between individual forces. Fresh
percent of respondents. Although the MRAP market spending commitments from NATO members are likely at
has contracted, all other vehicles are likely to be faced the core of rising interest in interoperability.
with the prospect of ID emplacement in any current

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6. Overview of key threats to armoured vehicle survivability
Thinking specifically about the requirements in your region of interest, which threats
should armoured vehicles seek to protect against most when considering the pre-
sent and future threat landscape?
GLOBAL
CBRN (Chemical Biological Radiological Nuclear) 34%
Small arms ballistic attack (up to and including 7.62mm) 58%
HMG ballistic attack (above 7.62mm) 56%
Blast / IEDs 79%
Directed energy systems attack 35%
RPG 68%
Unfamiliar and difficult terrain / climate 44%
AFRICA
Blast / IEDs 89%
RPG 68%
ASIA-PACIFIC
Blast / IEDs 76%
RPG 55%
EUROPE
Blast / IEDs 79%
RPG 78%

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MIDDLE EAST
Blast / IEDs 95%
RPG 65%
NORTH AMERICA
Blast / IEDs 74%
RPG 70%
LATIN AMERICA
Blast / IEDs 47%
RPG 60%
Supporting the data in Figure 5, blast and IEDs are seen as acquisition for the likes of laser and electromagnetic
the most significant threat to armoured vehicles over the technology. The threat posed from Chemical Biological
next decade. Globally, 79 percent of respondents believe Radiological Nuclear (CBRN) attack also rose by 5 percent.
the IED to be the key threat (up marginally on last year), Undoubtedly, we are in a diverse era of warfare.
followed by RPGs (up 10 percent year-on-year) and small
arms ballistic attack (58 percent down 5 percent). Regionally, the IED is still the biggest threat in the Middle
East (95 percent), Asia-Pacific (76 percent), Europe (79
Overall, this years survey found that these statistics are percent), North America (74 percent) and Africa (89
slightly more level than last year, indicating a greater percent). Indeed it is seen as the priority armoured vehicle
awareness of fringe threats as playing an increasingly requirement in every region other than Latin America,
larger role in the battlespace. For example, the threat where small arms ballistic attack was considered the most
of directed energy weapons saw a 15 percent jump in important attribute among 67 percent of respondents, and
importance (particularly in the Middle East, which saw the where RPG attacks also rated higher on the threat-scale.
DE threat climb a massive 36 percent). This is a significant
result that suggests an anticipation of a far more tech-
savvy adversary in the coming years and an ease of

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7. Analysis of global demand for armoured vehicle
type through 2026
Which type of armoured vehicles are likely to be in the highest demand globally over
the next ten years?
10% 21% 14% 28% 5% 15% 0%
Main Battle Mine-Resistant Light Protected Armoured Amphibious Unmanned Little demand
Tanks (MBT) Ambush-Protected Vehicles (LPV) Personnel Armoured Ground Vehicles for any
(MRAP) Carriers (APC) Vehicles (UGV) armoured
vehicles
Following the new trend from last year, the Armoured to recent figures around 6,000 MBTs are forecast to be
Personnel Carrier (APC) remains the vehicle most likely to produced globally over the next 10 years for a total cost of
be in highest demand over the next decade after the slow about $26bn.
decline of the once-prominent Mine Resistant Ambush
Protected (MRAP) vehicle. The APC was identified as the However, this has by no means taken demand away from
vehicle likely to be in highest demand globally over the light armoured vehicles. Around 11,000 light tracked
next ten years with 28 percent of respondents indicating vehicles are forecast to be produced over the next decade,
it as a key choice, just a percentage point up on last year. valued at over $30bn while almost 27,000 light wheeled
The MRAP fell four points to 21 percent. vehicles valued at over $12bn are also forecast to be
produced. LPVs alone accounted for 14 percent on this
Demand for the Main Battle Tank (MBT) rose this year, years demand-scale.
fending off the wider trend for lighter, more agile and
flexible vehicles. A number of countries are developing The Unmanned Ground Vehicle (UGV) also edged further
new and modernising old MBTs with Turkey, South Korea up the chain with 15 percent identifying it as a platform of
and Thailand all requiring a heavy armoured platform in choice in the future compared with 14 percent last year.
the future. Although seen as less versatile to meet the A number of countries are investing in the technology
range of possible future operational scenarios, the MBT including the Russian Ministry of Industry and Trade
is still viewed as the staple in fleets requiring resistance (Minpromrtorg), which is aiming to create a roadmap for
to sophisticated weapons and armoured adversaries. the development of robotic systems and UGVs valued at
The risk of state-on-state conflict between such high-end around $0.5m.
militaries, rather than against low-tech guerrilla fighters, is
arguably more intense now than in recent years. According

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8. Analysis of technology investment over the next decade
Thinking about how governments will apportion budgets over the next 10 years,
which areas of armoured vehicles will see the greatest investment globally?
31% 43% Ballistic armour systems
Ballistic armour systems / counter-IED
Communications systems
41%
Maintenance,repair and overhaul (MRO)
66%
Training and simulation pertaining to
armoured vehicles
41%
Consistent with the analysis of the data in Figures 5 and 6, platforms. It is a sign of the times that the through-life cost
the technologies that respondents believe will be granted of an armoured vehicle is now viewed on a par with the
the most significant levels of investment are counter-IED factory cost of a vehicle. It underscores that governments
measures and blast protection systems. Almost two thirds are getting or at least trying to get smarter at procuring
(66 percent) said that these systems will be favoured when military equipment and investing more resources into
defence ministries look to apportion budgets over the ensuring that the kit they buy is not only relevant and cost
next few years. This represents a 2 percent year-on-year effective now, but 30 years from now too.
increase, further underlying the significance of the IED and
blast threat and need for future investment. The spike in the demand for ballistic armour systems at
6 percent on last year corresponds with the expansion
Demand for investment into maintenance, repair and of efforts to counter adversaries armed with small and
overhaul (MRO) continued its decline this year at 41 medium ballistic weapons, from Daesh in the Middle East
percent, down 4 percent on last year and 6 percent and North Africa, to rebel groups and operating in the
on the year before. This is perhaps due to an increase jungles of Latin America and South-East Asia.
in the number of new vehicles and vehicle-types, as
well as associated technologies, currently being sought
for procurement in lieu of maintaining existing/ageing

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9. Analysis of technology investment over the next decade
In terms of improving performance and survivability, which technology do you think
will have the greatest impact on the armoured vehicle market over the next decade?
53% 38% 51% 14% 43% 56% 39%
Active Interoperable Modular ballistic Electric Situational Active Mine Vehicle

Protection communication armour systems armour awareness (i.e. Protection information
Systems (i.e. systems external CCTV) Systems integration
Iron Fist)
Active Mine Protection Systems (AMPS), and other APS such as Rafaels Trophy, which is designed to identify
innovations to mitigate the specific effect of IED blasts, and intercept incoming projectiles, are still seen to be
were identified as likely to have the greatest impact on critical AFV technologies according to 53 percent of
future armoured vehicle design, with more than half of respondents, reinforcing the number one priority of
respondents citing these as front-running technologies. keeping the troops safe inside. Used in combination with
This overtakes the factor of more general Active Protection traditional armour, active protection systems can offer
Systems (APS) last years leader by 3 percent. Any much needed supplementary support and will continue
military strategist will tell you that the IED threat is not to see significant investment from research houses
going away. At present, innovators are reflecting on and specialist manufacturers. While APS are unlikely to
lessons learnt from Iraq and Afghanistan and developing replace physical armour systems in the short-term, the
more sophisticated systems for future armoured vehicles advancement of the technology does not appear to be in
to face hybrid threats in complex operating environments. doubt and is likely to become a major component of an
The development of active mine protection systems is armoured vehicles protection system in the future.
central to the work in this field. This particularly important
as demand for the MRAP with its ultra-heavy frame Electric armour has been a burgeoning technology for a
recedes and new methods of blast protection is needed number of years but it still hasnt emerged as a reliable
on the large number of light or tracked vehicles rolling market solution for the mass market. 14 percent of
(back) into service. A number of companies are in the respondents a nominal 2 percent increase believe it will
midst of trialling or marketing ground-breaking solutions have an impact on the armoured vehicle market over the
in this field, including Advanced Blast & Ballistic Systems next ten years. Its likely that when electric armour been
Limited (ABBS) which received UK government funding through a robust development and testing programme
to advance its AMPS project towards new tests in October it will be an effective protection solution whether that
2016 and TenCate Armors recently launched Active Blast happens within the next decade is unknown.
Counter Measures System (ABDS).

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10. Analysis of armoured vehicle challenges through 2026
To what extent do armoured vehicle manufacturers in your region of interest find the
following a challenge?
0% 25% 50% 75% 100%
Budget limitations
Getting a foothold in new and

emerging markets
Understanding the future theatre of

operations and requirements
Working with government
Working with suppliers
Not a challenge Very challenging
Somewhat of a challenge Insurmountable
Although a negligible fraction, more respondents thought factor to deal with behind budget, with 57 percent rating
the challenge of working with government entities was it very challenging-to-insurmountable. This reinforces
an insurmountable hurdle (6 percent) but over half of what we already know that regional armoured vehicle
all respondents did not see this as a major problem. manufacturers and component suppliers are seeking
This suggests that while business is not often hindered to expand their global operations and diversify their
by a breakdown in communication with government customer-base, but that they need help. Assistance
representatives, when it is, the impact is lethal. invariably will come from more engagement with regional
military and industry leaders and gathering intelligence on
Understanding the future threats and requirements and specific markets.
budget limitations (5 percent each) also saw small slivers
of similar disgruntlement from respondents. Overall, While still one of the key challenges for industry and
money remains the most challenging factor, with budget governments, the improved economic environment
limitations accounting for 68 percent of strong concern has had a soothing effect on market confidence and
among respondents. As indicated in Figure 8, budget requirements are again considered an important
limitations present a more intense problem for industry consideration as opposed to cost alone. Given that most
and government, considering that the demand for better of those surveyed remain largely happy with working
protection is steadily rising year-on-year. with governments and suppliers, there is hope that these
requirements can be readily met through a cooperative
The task of reaching new markets drops from the top approach.
spot on 2016 but remains the second most difficult

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11. Overview of global military perception of armoured vehicle
fleet potency
In ten years time do you foresee your armoured vehicle fleet to...
72%
20%
8%
...be more potent ...stay the same ...be less potent
After years of decline in how much faith military There has at the same time been a marked decrease (7
respondents had in the future of their armoured vehicle percent) in those expressing a negative outlook of vehicle
fleets, last year saw an increase in confidence returning potency since last years report. Overall, 92 percent of
with 69 percent. This has now risen to 72 percent, respondents believe future armoured vehicles will be
confirming a new trend of assurance that that future at least as potent in the battlefield as they are today,
armoured vehicle fleets will be more potent within the consistent with the resurgent strength of the market.
next decade. That marks a significant 16 percent rise since
2015.

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12. Analysis of global military perception of key armoured
vehicle requirements
Please rate how critical you view the following attributes in terms of key
armoured vehicle requirements over the next 10 years.
Inadequate Good enough Very good Exceptional
Lethality 27% 38% 31% 4%
Survivability 20% 51% 24% 4%
Mobility 15% 45% 36% 4%
Scope for modernisation 27% 27% 38% 8%
Communications 15% 46% 25% 15%
Flexibility (for foreign conflict and 30% 30% 38% 2%

homeland security operations)
Speed 17% 46% 35% 2%
Value for money 29% 41% 24% 6%
Figure 12 gives an overview of current levels of satisfaction and unconventional engagements driving a need for an
within the military community regarding their armoured improved diversity in capabilities.
vehicle fleets.
Interestingly, survivability measures are thought to be
There was a 10 percent increase in those who felt current much more effective than they appeared in last years
communications systems are exceptional. Aside to an results, with only a fifth of respondents believing them to
8 percent increase in those felt there was considerable be wholly inadequate, compared to 44 percent last year.
scope for modernisation, most recorded a modest This corresponds to recent efforts to up vehicle protection
opinion of current fleet capabilities. Likewise, the flexibility in the last 12 months across many militaries, but adjacent
of vehicles to operate at home or abroad saw almost a to other statistics suggests that this is a temporary
third of respondents express an opinion that current improvement, with future threats likely to bring forth
vehicles are inadequate. Again we see uncertainty in further upgrade requirements.
the style or intensity of future conflicts, with military
personnel expecting a schism between conventional

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REGIONAL
REGIONAL MARKET
DEVELOPMENTS
ANALYSIS

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EUROPE
While much has been made of the impact of strategic continue to be hosted at installations including Estonia,
airstrikes in Syria on IS targets, and while press Latvia, Lithuania, Poland, Romania and Bulgaria with
reports surrounding skirmishes across the Russia- the intention to reduce force deployment times and
Ukraine border have subsided considerably since the enable a rapid response to potential contingencies.
annexation of Crimea, neither situation presents a
significant subsidence in tension along either NATO Confidence in the European armoured vehicles market
flank. There remains a continued threat of both high- has climbed. According to Defence IQs research,
end conflict and asymmetric warfare in Europe, with the past year has seen buoyant assuredness in the
numerous terrorist attacks marring public reassurance regional business market, building back against the
efforts from the regions security and intelligence uncertainties of the past three years.
forces. Meanwhile, an increased Russian presence
in the Arctic region presents an emerging risk on the SIPRI reported (April 2016) that while military spending
northern front. Meanwhile, humanitarian operations, decreased in Western European in 2015, Eastern
primarily in the Middle East and Africa, remain a factor Europe saw investment increasing (up 7.5 per cent
that draws upon European resources. on 2014). However, the trend of a decline in military
spending in Western Europe also slowed from the
Where armoured vehicles are concerned, there previous year (1.3 percent). Countries in Central Europe
remains a need for both military and law enforcement were also seen to have increased spending by 13 per
to ensure that the most capable and protected cent, largely prompted by fears of Russian aggression
inventory remains available, be it for urban operations following the Ukraine crisis. Overall, expenditure in
or for the prospect of conventional land engagements. Europe rose 1.7 percent to $328bn, suggesting that
Many militaries nations have taken definitive action on widespread austerity measures may be slowly coming
overhauling their armoured vehicle fleets in this post- to an end.
Afghanistan era to meet a very different and complex
range of threats, while others have been hampered
significantly by the economic turmoil of the 2010s,
continuing to pursue ambitions of modernisation The defence budget
of Ukraine has
through a financially restrictive corridor. However, all
efforts to introduce new military hardware take time
quadrupled from 2014

a fact that is hard to swallow when the continent
collectively faces a more sophisticated opposition,
a more advanced and lethal weaponry, and those
potential adversaries operating armoured fleets with
comparable capabilities.
to 2016
From NATOs perspective, a campaign of renewed The defence budget of Ukraine has quadrupled
collaboration and support has been expanding, from 2014 to 2016 with drastic efforts to reform and
particularly when it comes to the provision of more rebuild taking place. The 2016 budget around $4bn
permanent U.S. equipment stationed on European constituted a massive five percent of the countrys
soil. For example, U.S. Army Europe will occupy a GDP. The military has increased its size to roughly
base in north-west Germany to store tanks and other 280,000 soldiers, making it one of the largest military
combat-ready equipment, in response to the sustained forces in Europe. Concerted efforts have been made
military build up of Russian forces across the Ukrainian to speed up procurement processes while removing
divide. This builds on a previous establishment of a inefficiencies. Monthly upgrade targets have been
persistent rotational presence of forces and equipment set, alongside the introduction of new legislative
coined the European Activity Set (EAS) that sees amendments, logistical refinements and training
the Alliance outfitted with a readied U.S. armoured initiatives. By 2020, the Ukrainian Armed Forces (UAF)
brigade in Europe. Army Prepositioned Stock (APS) will aims to have renewed and modernised enough to

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ensure a high-level of protection of its state territory. rolling in the face of European sanctions. Recent years
It is understood to have received 15 new equipment have seen the highest post-Soviet budgets emerge in
types in 2015, including APCs and light armoured the countrys history. A 7.5 percent hike on defence
vehicles. Support has of course come from other spending in 2015 took the budget to $66.4bn but 2016
nations, including the UK provision of 55 used Saxon finally saw shrinkage of 5 percent, knocking the country
AT-105 APCs and the U.S. offering up over 200 out of the top three global military spenders (Saudi
unneeded Humvees. 316 tanks and 251 BMPs and Arabia has taken its spot).
BTRs have also been taken out of long-term storage for
integration into active service. What has not dissipated is the level of threat Russia is
promoting in Eastern Europe. This past summer saw
Most recently, the UAF took delivery of the first ten new reports of Russian tanks moving into occupied
of a batch of Dozor-B armoured vehicles, developed territory in Crimea, with footage emerging of armoured
by Kharkiv Morozov Machine Building Design Bureau trucks and troop transporters mobilising. Outbreaks
(KMDB), in the summer of 2016. The special operations of violence in the area are also still being reported.
vehicle is a 4x4 APC capable of carrying ten personnel Approximately 40,000 Russian troops were reported
and offering protection against armour-piercing bullets, to have amassed along the Ukrainian border between
shrapnel and mines, and CBRN attacks. It is fitted with June and August 2016, prompting widespread concern.
the BPU-12.7 machine gun, night vision equipment, The subsequent Kavkaz 2016 war game involving
and the NSVT 12.7 machine gun with optical monocular thousands of troops in Crimea was no doubt intended
periscope sight. as a show of strength.
Moscow remains in the process of overhauling

its ageing armoured vehicle fleet, replacing Soviet
technology with equipment to match or exceed
the capabilities seen in Western Europe and North
America. New vehicles that have been showcased to
the public include the Armata family of tracked vehicles
(Universal Combat Platform/BMP-T-15) set to replace
Soviet-era heavy armour. UralVagonZavod Research
and Production Corporation is the prime contractor
for the T-14 MBT, of which the first test consignment of
over 100 units has now been ordered by the Russian
The Dozor-B fleet began delivery to Ukraine in summer 2016. Ministry of Defence and a unit price agreed. The
Image: Wikimedia T-14 is armed with an externally mounted 125 mm
smoothbore gun with 32 rounds of ammunition in
Also reportedly tested at the start of the year was the autoloader, and is said to operate a firing rate of
the 4x4 Triton light APC from Kiev-based Leninska 1012 rounds per minute with a maximum effective-
Kuznya, of which 62 units have been ordered by the penetration range of 8 km. Programme managers
Ukrainian Border Guard. At a combat weight of 10 tons, have claimed the fifth generation tank is invisible to
the Triton carries reconnaissance and observation radar, but many analysts believe these claims to be
equipment, a remote control turret from Leninska overstated. The army plans to acquire 2,300 T-14s
Kuznya that integrates a 12.7-mm machine gun and a to replace the T-72M3 and T-90 MBT fleets. Likewise,
UAG-40 grenade launcher. the T-15 heavy IFV, Kurganets-25 IFV and APC, and
Boomerang 8x8 will all be moving in to replace the BMP
Around the same time, the Ukrainian government and BTR vehicle series. In addition, the 2S35 Koalitsiya-
signed a contract with Textron Systems to become the SV (Coalition-SV) self-propelled artillery (SPA) system will
launch customer for three Survivable Combat Tactical replace the 2S19 MSTA-S SPA currently in service with
Vehicles (SCTVs). The vehicles will augment a fleet of Russian Ground Forces.
230 High-Mobility Multi-Wheeled Vehicles (HMMWVs)
provided by the U.S. in a non-lethal aid support Christopher Foss of IHS Janes International Defence
agreement. Review wrote in August 2016 of Russias development
of a slat armour system designed for tracked and
Russia has of course been doing its utmost to keep
its military expansion and modernisation efforts
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wheeled AFVs for enhanced survivability against anti- The nation is progressing with its future rapid effects
tank weapons fitted with a single high-explosive anti- system (FRES) programme, having pledged a 390m
tank (HEAT) warhead. It is understood this armour can ($608m) support contract in 2015 for the General
be fitted to several vehicle families in Russian service, Dynamics Scout Specialist Vehicles (SV) fleet since
including BTR-60/70/80 APCs and BMP-1/2 IFVs. named Ajax following a 3.5bn ($5.46bn) deal
announced ahead of the 2014 NATO Summit in Wales
In April, Russia ordered an additional 20 BTR-82A 8x8 to buy 589 of the vehicles. The contract will run until
APCs from the Arzamas Machinery Plant of Russias 2024. In March, Ajax received the first production
Military-Industrial Company (MIC). The ground forces standard 40 CTAS (Cased Telescoped Armament
and navy already operate over 2,000 vehicles in the System) 40mm weapon system from CTA International,
BTR-80 family, many of which are being modernised a joint venture between BAE Systems and Nexter
(and re-designated as BTR-82AM). Full delivery of this Systems. The weapon system will arm Lockheed
order is scheduled before 2017. Martin-developed turrets for the 245 Ajax vehicles. A
total of 515 gun systems from CTAI are contracted to
Activity in the Arctic region is also seeing armoured be delivered over the next six years.
vehicle activity, with reports emerging in May 2016 that
Russia could be trialling Toros tracked AFVs to mobilise Lockheed Martin UK is the prime contractor for
personnel in the tundra while also being prepared the WCSP, overseeing the upgrade of at least 380
for combat. Traditional BMP-2/3 IFVs and BTR-80 armoured fighting vehicles for the Army. The company
/82A APCs are said to have lacked the resilience for is understood to be bidding for the MODs contract
Arctic operations. Toros, produced by Russias OAO to upgrade the British Armys Challenger 2 tanks in
Muromteplovoz, is based on the MT-LBu armoured collaboration with Elbit Systems UK. A proposal to
tracked towing unit, specially modified for Arctic use undertake the Life Extension Project (LEP) should see
and with a service life of 30 years. the MBT fleet remain in service until 2035. Should
The vehicle has a road speed of 60 km/h and can the bid be accepted, work is likely to be undertaken
traverse water at 4-6 km/h thanks to a YaMZ-238BL-1 at LMUKs newly opened (June 2016) manufacturing
(310 hp) diesel engine. facility at its Ampthill site in Bedfordshire, where work
on Warrior and AJAX is already underway.
According to footage from Russian state media,
defence contractor VPK LLC has developed a driverless, Meanwhile, the British Army has retired the ST Kinetics
semi-autonomous version of the GAZ Tigr, featuring a Warthog articulated tracked armoured vehicle from
remote controlled 30mm gun with the ability to identify service. 115 Warthogs had been ordered by the UK
and track targets. under an urgent operational requirement (UOR) for
use in Afghanistan, beating out the less-protected BvS
The United Kingdom has seen notable activity in 10 Viking articulated tracked vehicle. Plans to retain
the past year as it continues its out with the old; in use of the fleet after Afghanistan (to be modified and
with the new approach to fulfilling the Army 2020 transferred to the Royal Artillerys 32 and 47 Regiments)
restructure, ultimately aimed at saving 5.3bn ($8.9bn). had been announced in 2013, but this decision was
Following changes at Divisional, Brigade and Unit level, eventually reversed.
including implementation of a mid-life upgrade to 643
Warrior infantry fighting vehicles in a project known Irelands Defence Forces took delivery of two more
as the Warrior Capability Sustainment Programme MAN HX 60 4x4 armoured trucks in August 2016,
(WCSP), the UKs ambition is to streamline the vehicle which are fitted with Marshall Aerospace and Defence
fleet with fewer but high-end solutions. In July, former Groups armoured shelter for their EOD units. These
Prime Minister David Cameron reassured NATO new vehicles will augment those already in service,
members that the UK will maintain its pledge defence supporting Irelands UN missions operating in the
spending to 2 percent of GDP, as required under Middle East, where its EOD teams deploy in armoured
Alliance guidelines. However, following the countrys vehicles as part of route clearance operations and to
referendum to part from the EU, question marks have handle unexploded ordnance uncovered by other UN
emerged over MOD spending and the potential of a forces operating in the area.
700m black hole resulting from a drop in the strength
of the pound.

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France continues to move forward with its landmark
752m ($929m) SCORPION (Synergie du COntact
Renforc par la Polyvalence et lInfovalorisatiON) army
modernisation programme providing a new generation
of wheeled combat. The deal will see development
and acquisition, maintenance and training equipment
provided for the 6x6 Vhicule Blind MultiRole (VBMR,
or Griffon) and 6x6 Engin Blind de Reconnaissance et
de Combat (EBRC, or Jaguar). Griffon will replace the
4x4 VAB light armoured transport vehicle, while Jaguar
will replace a range of other wheeled combat vehicles
in service, such as theERC90 Sagaie and the AMX 10RC.
The vehicles are being developed by an all-French
consortium comprised of Nexter Systems, Renault
Trucks Dfense (RTD) and Thales Communication and
Security. Frances Leclerc MBT is set to be modernised for delivery in
2020. Image: Daniel Steger
The Army is to receive Jaguar by the end of 2020. In
total, 110 of these vehicles will be inducted through in Olivet. The remaining vehicles are used for different
2025 as part of Step One of SCORPION, and the purposes including for training in Mourmelon and
remaining units during Step Two, with deliveries to be Canjuers military training camps.
completed in 2032. The main system of this vehicle
is the T40M two-man lightweight modular protected This modernisation is intended to provide the vehicle
compact stealth turret being developed by Nexter in with additional capability to intervene in urban
cooperation with other suppliers, the DGA and the scenarios, face future threats and deliver increased
Armys Technical Section, the STAT (Section Technique fire power. The upgrade will provide the vehicle with
de lArme de Terre). capabilities to integrate SCORPION battle groups,
increase its capability to intervene in urban scenarios
Details also emerged in June 2016 of the modernisation and high intensity scenarios, deliver improved
of Armys Leclerc MBT. Nexter Systems is working on protection and increased fire power. It also reduces
the development of an enhanced configuration of support costs and maintains the vehicle to high
the tank, which will see two prototypes completed standards for MBTs.
in late 2018 for trials by DGA and the STAT. The
two prototypes will be followed by an initial serial In spite of a wider European trend to hike defence
production modernised vehicle to be delivered in budgets, Italys budget dipped again in 2016 and
2020, with the last scheduled to be inducted by the is expected to do so for a further two years. 2016
French Army in 2028. A contract worth approximately procurement funding allocated 2.18bn from the
$366 million to modernise 200 of the main battle tanks Defence Ministry and 2.54bn from the Industry
and 18 existing DCL (Dpanneur de Chars Leclerc) Ministry, down on 2015s 4.87bn total but up on
armoured recovery vehicles to Leclerc Rnov (XLR) Italys initial forecast by almost 2bn. While this is
and DCL Rnov (DCLR) standards respectively was unnerving to the nations military officials, given Italian
awarded on 5 March 2015. France is also considering commitments to security in North Africa and renewed
the feasibility of modernising additional MBTs. concern over Russian aggression, several large defence
Modernising the current Leclerc simulation systems programmes are continuing to move forward, albeit
installed at the Saumur military school is also being with their share of obstacles.
considered.
Of the 406 MBTs received since 2007, 346 units are

currently in active service. 200 are in service with the
501e Rgiment de Chars de Combat in Mourmelon
(501e RCC); 1er Rgiment de Chasseurs (1er RCh) in
Verdun; and the 12e Rgiment de Cuirassiers (12e RC)

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Recent efforts to purchase up to 381 Freccia 8x8 European Land Systems-Santa Brbara Sistemas
multirole armored vehicles from the Iveco-Oto Melara (GDELS-SBS), Indra Sistemas and SAPA Operaciones
(Finmeccanica) consortium had been set to cost to develop its future 8x8 AFV. The new vehicle would
around 2.65bn, with acquisitions spread over the progressively replace Spains BMR M1 (Blindado Medio
coming years until 2024. However, reports in 2016 de Ruedas) 6x6.
suggest that the plan to build a second brigade on the
basis of the Freccia received only $23.58m in funding,
prompting concerns that rate of production could be
drawn out for far longer than the 2024 deadline. These Spain has rebounded
new vehicles are being introduced to provide the Italian
Army with greater mobility and digitization, capable of back into serious
defence investment
a range of roles including combat, anti-tank, mortar,
command post and exploration.
$180m is understood to have been earmarked for

the new Centauro II wheeled tank programme an
after years of downturn
upgrade to the existing Italian tank and benefiting
from a 120mm gun and 720 hp engine being
and austerity.
developed by a consortium of Italys Iveco and
Leonardo-Finmeccanica. Up to 140 of these vehicles
may eventually be ordered. The Army received the A risk reduction effort is in place to develop six
prototype over the summer, with tests set to run different technological projects related to several latest
through 2017. generation systems aimed to integrate the final vehicle.
The 89.2 m ($96.4 m) contract covers research,
Although high-end tanks present a current gap in the development and the production of prototype vehicles
Army (should Italy be required to engage in a land to be trialed between 2016 and 2018 as part of the
campaign in the near future), medium vehicles have Vehculo de Combate sobre Ruedas (VCR) programme.
been considered the key element in terms of providing Up to 400 vehicles in different variants are expected to
the flexibility and digitisation required of the modern be ordered with the GDELS-Mowag Piranha 5 multi-
Italian fleet. Previously announced armoured vehicle role design serving as the base platform. Spanish Navy
priorities include the completion of upgrades to the Marines have already fielded Piranha 3 8x8 amphibious
Ariete MBTs and the Dardo IFVs to urgently upgrade IFVs.
IED protection. UGVs are also being closely considered
for future Italian procurement as the technology Of companies involved in the VCR 8x8, SAPA Placencia
matures and new innovations enter the market. On the is understood to have been in talks to supply engine
export side, the Italian government recently donated installation and subsystems including automatic
54 military trucks to the Somali National Army (SNA) as transmission and driveline. Indra Sistemas is set to
part of assistance in rebuilding the army of the war- be providing electronics and command and control
ravaged nation. systems. Spanish entities including Navantia Sistemas,
Airbus Defence and Space, Amper, Mecanizados
Spain has rebounded back into serious defence Escribano, EXPAL, GMV and OTO Melara Ibrica could
investment after years of downturn and austerity. The also be competing as local sub-contractors.
country spent 40 percent more on defence in 2015
than was included in the governments initial budget Portugal approved its 12-year military programming
of 5.76 bn ($6.53 bn). Final defence expenditure law in early 2015 with the Ministry of National Defence
saw the budget rise from 7.69 bn in 2014 to 8.1 expected to spend 960m ($1.084bn) in armament
bn. In one of its most significant new efforts, the programmes up to 2018. Of these, the priority army
Spanish Army has awarded a contract to a temporary programmes over the next four years include the
consortium designated UTE VCR 8x8 (Unin Temporal procurement of 4x4 light armoured vehicles for the
de Empresas Vehculo de Combate sobre Ruedas 8x8) armys Rapid Reaction Brigade (BrigRR). The country
formed by the Spanish companies General Dynamics recently received a contingent of 166 Pandur II 8x8

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Organisation for Joint Armament Cooperation (OCCAR)
in May 2016 to supply further Boxer multirole AFVs.
This contract increases the number of engineer
vehicles from 39 to 92 and reduces the number of
cargo vehicles from 15 to 12 and command post
vehicles from 36 to 24.
The Armed Forces of Belgium have phased out

tracked vehicles to go completely wheeled, with an
inventory that includes the Piranha 8x8. In January
2016, Belgium ordered 108 Fox 4x4 Rapid Reaction
Vehicles (RRVs) from Jankel, an upgraded military
version of the 79 Series Toyota Land Cruiser. The Fox
is expected to replace Belgiums ageing Volkswagen
Iltis light 4x4s used by the special forces. Alongside the
order, Belgium is acquiring 38 removable protection
Portugal has received new Pandur II 8x8 APCs. Image: Allied kits for the vehicles and ring mounts for mounting 12.7
Joint Force Command Brunssum
mm heavy machine guns (MGs) or 40 mm automatic
grenade launchers on 60 of the vehicles. All 108 can
armoured vehicles and the armys Intervention Brigade mount 7.62 mm MGs.
(BrigInt) completed delivery of 22 more vehicles in
June 2016 as part of a deal agreed in October 2014 The country raised its alert status after the high-profile
between Portugal and General Dynamics European arrest of terrorist suspects in 2015. The country has
Land Systems (GDELS), taking the total number to since adopted its new Strategic Defence Plan for 2030,
188. Portuguese investment in modern equipment which intends to see the defence budget rise from 0.9
in 2015 constituted 8.7 per cent of overall defence percent of GDP to 1.3 percent (below the rumoured 1.6
spending, which itself tallied on 1.33 per cent of GDP, percent discussed in 2015), but will be accompanied
below NATOs 2 per cent threshold. However, this by a reduction of personnel numbers. Under the
figure is an improvement on Portugals 2014 figure and proposals for new investment into all services, the
consideration of the damage the country experienced army is earmarked to receive new wheeled vehicles,
as a result of the eurozone debt crisis must be held in alongside 155mm artillery, communications systems
consideration. and smart combat gear. The Piranha and Dingo are
also expected to be upgraded.
While the Netherlands decided to increase defence
spending by $129 million (100 million) per year from After a long period of tentative negotiations, the
2015 following the downing of Flight MH17 over East German government has committed to boosting
Ukraine defence investment remains at 1.14 percent defence spending considerably. Federal budget
of GDP, beneath the average of NATO state spending. proposals for 2017 have earmarked an additional
$1.9bn a 6.8 percent rise on 2016 equating to
2016 saw the Royal Netherlands Army complete $40.39bn in 2017. This will more than double the
delivery of the first batch of Boxer vehicles, including growth rate of 2.7 percent for the federal budget as
(NLAMB) ambulance versions, Command Post versions, a whole. Budget approval has been made until 2020,
(GNGP) Engineering vehicles and Cargo variants. Boxer where Germany is set to spend $43.96bn.
is produced by ARTEC industrial group (Krauss Maffei
Wegmann; Rheinmetall Landsysteme; Rheinmetall As part of its modernisation, Germany is preparing to
Nederland), which is supplying hundreds of the vehicle adopt the of the Puma AIFV, with Projekt System and
for the Netherlands and Germany. Management (PSM) stepping up development and full
rate production of 66 units per year set to be achieved
After the Netherlands identified a need for additional in 2017. 350 units will be supplied to the German Army
engineer vehicles instead of cargo and command by 2020 (reduced from an initial order of 405), with 78
post vehicles, ARTEC signed a new contract with the having been delivered as of August

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more expected by the end of 2016. Sources say there UK, the Netherlands, Sweden and France.
remains the prospect of an additional order of between
100 and 200 units. Development of the Puma over the Toward the end of 2015, the army took delivery of
course of the programme has seen the power pack, six Husar light multi-role 4x4 vehicles from Iveco for
suspension and remote-controlled turret all modified policing and reconnaissance patrol duties. They were
ahead of delivery. the first of an order of 150 vehicles ordered, intended
to replace Austrias Horseman patrol vehicle fleet at
Germany-based Rheinmetall unveiled its Lynx tracked a cost of $121m. The Husar offers a remote weapons
IFV in June 2016, describing it as agile, hard-hitting and station and light armour for protection against gunfire,
highly protected for every engagement from peace mines and shrapnel.
enforcement to high-intensity combat. The company
is also, along with Krauss-Maffei Wegmann (KMW) Prior to this, Austria modernised its Pandur wheeled
group, manufacturing a total of 88 Boxer 8x8 IFVs (as armoured transport vehicles ahead of its 2015
joint venture Artec) for the Lithuanian military under peacekeeping mission to Kosovo, primarily to help
a $435m contract. Deliveries of the Boxer vehicles will enhance crew protection with mine-, IED- and ballistic
be completed in 2019 and will equip the Iron Wolf protection and to integrate a 360 electrically-powered
mechanized brigade. remotely-operated weapon station.
Authorities have found critical use in armoured vehicles

on Austrian soil in recent years, deploying them to get
supplies to civilians trapped in their homes after severe
ice storms cut off large areas of the country.
In October 2015, Hungary introduced new and

domestically-developed RDO-3221 Komondor
light armoured vehicles from the Gamma Technical
Corporation and the Hungarian Defence Industry
Association, for use by not only the military but
counter-terror and police forces, disaster relief services
and border protection authorities. The vehicle had
spent almost four decades in development, with
variants including a 44 ambulance and a 66 base
vehicle. Ninety different Hungarian companies were
said to be involved in building the prototypes, with
More Boxer 8x8s have entered service in the Netherland
following strong performance in the Germany Army. features ranging from radar to modular add-on
Image: ISAF HQ armour.
Hungarys defence budget is set to increase to $1.27bn

Worth noting is that French and German armoured in 2017 (0.94 percent of GDP). In 2012, the government
vehicle makers Nexter and KMW has sealed a merger adopted a resolution in which it pledged to increase
(named KNDS), combining the Leclerc and Leopard defence spending to 1.4 percent of GDP by 2022. In
tank brands in what could provide the foundation for May, the Hungarian Defence Minister promised to
further European defence consolidation. increase military aid for Peshmerga forces fighting
in Kurdistan. Hungarian tanks and other armoured
Austria ordered 32 BvS10 articulated all-terrain vehicles vehicles have meanwhile been mobilising soldiers
from BAE Systems in July 2016 at a cost of $95m. The in response to the migration of refugees on the
vehicle, a bigger and amphibious evolution of the Hungarian borders of Croatia, Serbia and Romania.
unarmoured Bv206, is intended for the armys alpine
operations and deliveries are currently scheduled from
late 2017 to late 2019. The deal includes weapons and
additional equipment. Existing operators include the

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The Czech Republic has been seriously readdressing the Corsac, based on the Pandur II. Slovokia is also
its military policy since Moscows annexation of said to be negotiating a purchase of 30 eight-wheeled
Crimea, with the government proposing an increase Rosomak AMVs from Poland to replace the outdated
in defence spending to 1.4 percent of GDP by 2020. In OT-64 SKOT APC fleet, following the signing of a letter
2015, the country updated the Security Strategy and of intent to cooperate on military transactions in July
Foreign Policy Strategy and adopted a new, long-term 2015. Rosomak is reported to be in line to be paid
acquisition plan leading up to 2030. $30m for the contract.
Further to its purchase of 58 surplus T-72s from May 2016 saw the unveiling of the Slovak-built
Hungary in 2014, the Czech Ministry of Defence is Aligator 4x4 Master II, built by Kerametal and aimed
looking to procure 210 tracked armoured vehicles at both armed and special forces. The vehicle is
for the army in order to replace its current fleet of amphibious and intended as a platform for a wide
obsolete Russian-designed BMP-2 tracked IFVs and range of deployments such as command, surveillance,
APCs. Once the contract worth $2bn is signed, reconnaissance, weapons station, CBRN and police.
deliveries are anticipated to begin in 2019 and take
place over the ensuing ten years. Among the expected In addition, the armed forces received six Tatra T 815-
bidders are Zetor Tractors, a manufacturer of tractors 79OR99 38 300 8x8.1R-L2 High Mobility Heavy Duty
and other agricultural machinery, which has developed (HMHD) tactical trucks at the start of 2016 as part of a
a new tracked IFV for military-use in the form of the wheeled vehicle fleet recapitalisation programme that
Wolfdog. began in 2012, with over 200 new vehicles from four
suppliers have so far been delivered. The L2 variant
The Czechs have been pooling resources with Slovakia offers a maximum road speed of 85 km/h, a payload
in order to achieve joint modernisation aims and capacity of 19,450 kg and NATO STANAG 4569 Level 2
bolster manufacturing industries across both countries. protection to counter small arms fire and mine threats.
GDELS signed a partnership with Czech firm Excalibur
Army in 2015 to market the Steyr Pandur II armoured However, unlike some of its neighbours, Slovakias
vehicle in Eastern Europe and Asia. That same year, the relationship with Russia is much less frosty, allowing for
Czech MoD confirmed the Army will be procuring 20 defence business to continue with Moscow. As such,
Pandur IIs to compliment the existing 107-strong fleet Russias Military Industrial Company (VPK) delivered a
of Pandur 8x8s. batch of Tigr multipurpose infantry mobility vehicles to
Slovakia (and other countries) in 2016. These vehicles
have been manufactured at the Arzamas Machine-
Slovakias 2016 Building Enterprise in Russias Nizhny Novgorod region

since 2005.
vehicle procurement Latvia on the other hand is wary of Russias shadow.
initiatives and domestic

It raised its defence expenditure to 1.4 percent of GDP
in 2016, with plans to expand this to the 2 percent
vehicle manufacturing
threshold by 2018.
programmes have been

July saw Canada commit around 450 troops and
armoured vehicles to Latvia for long-term deployment,
with Canada taking command of a 1,000-strong
particularly active multinational force in the country. Germany, the
United States and Britain are leading similar forces
in Lithuania, Poland and Estonia. In 2015, Latvia took
delivery of an initial batch of 123 overhauled and
Slovakias 2016 vehicle procurement initiatives and upgraded Scimitar Combat Vehicle Reconnaissance
domestic vehicle manufacturing programmes have Tracked (CVRT) vehicles from the UK for training and
been particularly active in the past 12 months. Among familiarisation in a deal worth $53.6m. The Scimitars
them, Slovakias MSM Group unveiled a new air- are being outfitted with Spike anti-tank and anti-
transportable 8x8 wheeled IFV prototype in May called personnel missiles.

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Latvia, Lithuania and Estonia have all raised their Acoustics RA7000 Elite Hearing Protection System
defence expenditure and are considering the has been selected as the hearing protection and
establishment a joint medium-range air-defence communication system for the Estonian CV90.
system to protect their collective airspace. Lithuania
has reintroduced conscription and Latvia is considering The Estonian Armed Forces are also looking to
taking the same measure. capitalise on the force-multiplying possibilities of
autonomous systems through its Digital Infantry
The Lithuanian State Defence Council approved Battalion Solution (DIBS) programme. Under the
negotiations with Germanys ARTEC for the purchase initiative, Estonian unmanned ground vehicle (UGV)
of 88 GTK Boxer 8x8 modular AFVs. The Ministry of manufacturer MILREM and the Estonian National
National Defence recommended this vehicle as the Defence College are developing CONOPS for the
preferred option to meet the Baltic NATO nations deployment of UGVs in support of battalion-level
land force requirements. Lithuania hopes to equip its infantry missions. MILREMs Tracked Hybrid Modular
future fleet with UT-30 Mk1 or Mk2 remote-controlled Infantry System (THeMIS) UGV has been built with a
weapon stations of Elbit Systems Land and C4I-Tadiran, modular architecture in order to keep its payload and
which includes the Orbital ATK Mk 44 Bushmaster mission set as versatile as possible. Among the options
30mm automatic cannon, FN Herstal MAG58 7.62mm available, the developers are keen to outfit the platform
machine gun, and Rafael Advanced Defense Systems with an RWS for an anti-tank role, an ISR suite, a CBRN
Spike LR long range anti-tank missile. The first vehicles suite, and (more traditional) EOD capabilities.
are expected to be received in 2017, with delivery
expected to complete by 2019. Aside to Estonias own fleet, ten more U.S. tanks,
four Bradley vehicles and several armoured support
Existing Lithuanian inventory consists primarily of the vehicles are to be stationed in the country in 2017,
M113A1G and M1064A4 tracked vehicles, M1114 4x4 along with 120 more U.S. personnel, as NATO
vehicles, and SISU ETP 8x8 logistics protected trucks. continues its rotation efforts in response to Russian
In addition to a number of howitzers purchased in aggression.
September 2015, Lithuania has invested in 26 BAE
Systems M577A2 tracked command post vehicles,
and six Rheinmetall Defence Bergepanzer 2 armoured
recovery vehicles, based on the Leopard 1 main battle Poland is planning to
spend $21.6bn on new
tank chassis.
military equipment in
Elbit Systems Land and C4I completed the upgrade of
M1064A3 120mm tracked armoured mortar carriers
of Mechanized Infantry Brigade Iron Wolf with new
barrel and digital automated fire control system. A
new Mechanized Infantry Brigade was created with its the near future
headquarters to be implemented in Klaipda in 2016.
Estonias Defence Minister announced plans at Poland, particularly spurred into action by the threat
the start of 2016 to spend around $916m on the of recent Russian military activity, is planning to spend
acquisition of new weapons and equipment by 2020. $21.6bn on new military equipment in the near future,
The 2016 budget of around $503m comes to 2.07 significantly modernising all services. This includes a
percent of the GDP. budget of $9.58bn for 2017, pushing military spending
to 2.01 percent of GDP.
The country has purchased 35 extra CV90 AFV hulls
from Norway for $674m, complementing the existing Polska Grupa Zbrojeniowa (PGZ), the state-run defence
44 CV9035NL IFVs bought from the Netherlands in group, has a strategy to triple its revenues by 2030,
2014. Estonia is planning to convert the additional hulls with an increasing eye towards raising its profile
domestically into combat support (CS) and combat for exports and foreign partnerships. Its subsidiary
service support (CSS) vehicle variants. Esterlines Racal Rosomak SA (formerly WZM), is currently producing

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Polands 8x8 AMV fleet made under license from Bulgaria wants to boost its defence budget-to-GDP
Finlands Patria. Many of these vehicles carry the Mk44 ratio currently at 1.3 percent at around $769m to
30mm cannon, but are now also being modified to fire 2 percent by 2024. This plan would include 20 percent
40mm. A new Rosomak-2 variant is said to be in the of expenditure ring-fenced for the acquisition of new
pipeline. gear. A government white paper released at the end
of 2015 outlined the areas where the country will
Rheinmetall was awarded an upgrade contract for prioritise defence-related research and development
Polands Leopard 2 MBT and is pitching its AMPV on activities, including weapons systems and CBRN
the countrys Pegasus 4x4 competition against the protection technologies.
likes of the GDELS Eagle V, the AMZ Kutno Tur V and
the Thales Hawkei which will outfit the Polish Special In May, the Defence Ministry halted two procurements
Forces. Rheinmetall is also manufacturing a 6x6 light to deliver 13 U.S. M1117 Guardian ASVs and six Israeli
armoured reconnaissance vehicle (LOTR) with Polands Sand Cat 4x4 armored vehicles to the Bulgarian
Obrum with hopes of replacing the Polish BRDM-2 4x4 Armed Forces, claiming the tenders were not managed
amphibious vehicle fleet. A prototype is expected in efficiently or transparently enough.
2017.
Like Belarus, Serbia is remaining relatively close-knit
Obrum (with BAE Systems) has been developing the with Moscow, inviting the Russian Army to participate in
futuristic-looking PL-01, a light tank boasting multi- two military exercises in autumn 2016 on Serbian soil:
layer ceramic-aramid armour and a 105 or 120 mm the first of which is designated Slavic Brotherhood.
calibre gun in an unmanned turret. A prototype has This close military cooperation has been a concern
been estimated for completion in 2016, with mass to NATO, while the EU is unlikely to admit Serbia as a
production presently scheduled to begin in 2018 at the member unless it pushes back on Russian integration
earliest. Obrum also displayed its Universal Modular and influence.
Tracked Platform (UMTP) prototype in September 2016,
boasting Spike LR anti-tank missiles and a 30mm turret, In 2015, Serbia announced that it will begin serial
with which the company hopes demonstrate to the production of the Lazar 2 8x8 multirole family of
MOD as a potential future solution. vehicles. Designed in 2013, the mine-protected
platform can be customised to roles including APC
Romania aims to continue its recent increase in and IFV, with options of additional composite armour
defence spending with ambitious hopes to reach the 2 and a Remote-Controlled Weapons Station (RWS)
percent threshold by 2017, according to the National with armament ranging from 12.7mm to 30mm.
Political Agreement. The 2016 budget was reported to Manufacturer YugoImport-SDPR unveiled a version to
be at 1.5 percent. Expenditure is being focused not just the public in July 2015. While having 15 on order for
on armed forces modernisation but also peacekeeping Serbia, there are high hopes for export.
missions, joint operations and border control
measures. Romanias state defence contractor Romarm Slavic brotherhood has been a particular worry for
announced a cooperation proposal in May with Italian- Croatia, which has been investing in Patria 8x8 AMVs,
American group Fiat Chrysler Automobiles to produce as well as Kiowa helicopters and howitzers. However,
the military 44 Jeep J8 in Romania. Croatia has been battling an ailing economy and
governmental unrest, leading to defence spending
Budgetary priorities follow the guidelines of a cuts being proposed in March 2016. The proposal
Programme concerning the transformation, earmarked $54.5m for 2016, a drop on the previous
development and procurement of the Romanian year.
Armed Forces by 2027 and beyond, which includes 28.8
percent of the budget allocated solely for procurement In 2015, the country displayed a number of its
purposes. Among key equipment to receive investment newly adopted armoured vehicles. These included
will be the purchase and modernisation of armoured four variants of the Patria AMV medical, logistical,
combat vehicles. This will ensure readiness of both a command and APC as well as 212 MRAP vehicles
permanent combat service and rapid reaction force. donated by the U.S. . comprising the Navistar

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MaxxPro, the Oshkosh M-ATV, and the BAE Systems the economic health of Belarus.
RG33 Heavy Armoured Ground Ambulance (HAGA).
Croatia had previously acquired Iveco Light Multirole In March 2016, Belarusian truck manufacturer MAZ
Vehicles (LMVs) and ex-U.S. Humvees to help round signed an agreement on establishing a production
out its military police and training requirements. line of trucks in Ukraines Cherkasy with the Ukrainian
Subsystem integration difficulties had caused delays to corporation Bohdan for both civilian and military
the acquisition of the 126 AMVs but the full contingent use. In vehicle-specific developments, the Belarusian
is expected to be in active service by the end of 2016 engineering company Volat (OAO Minsk Wheel Tractor
unless postponement is announced. Eight of these Plant) presented a model of the lightly armoured
will be equipped with a 30mm armed weapon station. automobile V-1 in the summer of 2016.
Several of the MRAPs have been absorbed into the
Croatian Special Forces Command (SFCOM), with Nordic defence cooperation is increasing, partly due to
others also going to the Support Command, Military Russias military activity. Focus on increasing common
Police Regiment and the Croatian Army. capability, bilateral security and patrol services,
and cost sharing on major programmes continue
Even though the financial situation in Greece remains to be part of the regional plan. For example, a pact
troubled, Greece spent around 2.4 percent of its between Sweden and Finland agreed in 2014 has
GDP on defence for 2015, a 0.1 percent increase in aimed to acquire equipment for both countries that is
spending over 2014. The previous year, the countrys compatible with NATO systems.
debt as percentage of GDP was at 175 percent, while
its economy contracted by 3.3 percent. Greek officials
offered $220m more in defence cuts in talks with
creditors, but the response was a demand instead for
$440m. The chunk of the current budget goes towards
the upkeep of the Hellenic Armys vast armoured
vehicles fleet, which includes 460 M113s adopted from
the US and 320 Oshkosh Heavy Expanded Mobility
Tactical Trucks (HEMTTs). The new arrivals include 225
M113A2 APCs to replace Greeces ex-East German
BMP-1 IFVs, along with 128 M577A2 command post
vehicles, 106 M901A2 Improved TOW vehicles, and
the U.S. Armys last operational M106 107 mm mortar
carrier.
A Danish Mowag Piranha 5 undergoing trials. Image: FMT
Belarus has continued to be involved in bilateral
military exercises with Russia, including 2015s Union Like Spain, Denmark has placed an order for Piranha
Shield sessions that emphasised rapid reaction. 5 vehicles 309 in total in a deal worth $651m,
However, despite the apparent cooperation between with deliveries scheduled to take place 2018-2023.
the two nations, Belarus is less willing to rattle the Denmark announced earlier that year the selection of
sabre in fear of stoking a hybrid conflict and remains the Piranha 5 design to progressively replace the M113
in communication with Ukraine. Minsk plans a slight series tracked armored vehicles of the Royal Danish
increase to the defence budget, but with a lack of Army. The service also currently fields several Piranha
public resources the government will need to raise IIIs. The vehicle was selected over GDELS-SBS ASCOD
additional funds through the selling of obsolete military 2, BAE Systems Hgglunds Armadillo, Flensburger
equipment. Fahrzeugbau Gesellschaft mbH (FFG) PMMC G5 and
Nexter Systems VBCI. It offers a gross vehicle weight of
In August 2016, the State Military Industrial Committee 30t with built-in growth potential rating 33t, payload of
of Belarus announced that in the first half of the year 13t, 8m overall length, height over hull of 2.3m, 2.99m
saw national defence enterprises earn a net profit overall width, maximum road speed of 100km/h and
of $80m, exceeding the assigned export plans by a top range of 550km.
quarter despite Moscow continuing its December
2015 policy of restricting access to Russian markets for In February 2016, Denmark announced that it had
Belarusian defence firms. These restrictions are said to qualified five approved bidders to provide new
be having a negative impact on bilateral relations and
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protected patrol vehicles for the army, aiming to defence of the Baltic region as a whole. Norway is itself
offer added protection and payload over the existing acquiring new CV90s and upgrading existing ones,
fleet. The bidders are understood to be General having been pleased with the performance of the
Dynamics Foxhound and Eagle V, Nexters Aravis, BAE Systems Hgglunds vehicles. It was announced
Oshkoshs M-ATV and L-ATV, and Otokars Cobra and in September 2016 that the first 12 (of 144) of these
Cobra II. Once vehicle-specific bids are in, the FMI will upgraded vehicles have been delivered.
downselect three vehicles for trials. An initial purchase
of 36 vehicles will be made, with an option to increase When it comes to high-tech solutions, the Norwegian
the order. Denmark is planning to operate a total of Army is undertaking interesting research in the
four variants of the vehicle: Patrol, Electronic Warfare, potential use of augmented reality (AR) technology
Support, and Reconnaissance (in both open- and to improve situational awareness and the utility of
closed-cab versions). Denmark currently operates armoured vehicle command, control, and information
91 Eagle IVs, along with 22 modified High-Mobility, systems. Norwegian combat vehicles are integrating
Multipurpose Wheeled Vehicles and a small number of battlefield management systems into the platform
Supacat Jackals that are used for special attack roles. architecture.
Finland is understood to be concluding a defence

cooperation agreement with the U.S. following Russian
activity around the Baltic and Nordic regions. This
would include incorporating joint military training,
information sharing and research. Both Finland and
Sweden have already signed a pact with NATO that
allows NATO to provide the two nations with military
assistance in emergency cases. An increase to the
defence budget in 2016-2020 is also expected to
continue in order to address an extensive reform
centred on issues relating to operational costs,
obsolete equipment and a reduction in conscript size.
A delivery of 20 surplus Leopard 2A6 MBTs from the

Netherlands is expected to be completed in 2019 in Former Norwegian CV90s are being sold to Estonia.
a $221m investment into Finlands long-term strike Image: PRT Meymaneh
force. Meanwhile, Finland-based Patrias delivery of 71
renovated XA-180 6x6 APCs for the Finnish Defence
Forces involving the installation of new seating and According to the Government of Swedens Defence
electric systems, and repairs to engines, transmission, Policy 2016-2020, the defence budget for the years
and axels is scheduled for completion in 2017, with 2016 to 2020 will increase by $1.18bn, largely in
the possibility of 210 more vehicles contracted for response to Russias military resurgence. The army
refurbishment. has ordered upgrades to 350 of its Leopard 2 MBTs
and CV90 IFVs at a cost of $300m, with Battlefield
In terms of export developments, Patria is selling the Management and Tactical Command and Control
8x8 AMV (armoured modular vehicles) to the UAE Systems being replaced aside to weapons systems,
armed forces. Patria, which is majority state-owned, has sensors, software, chassis and other features. Work
not confirmed the value of the contract or how many on the MBTs is due for completion in 2023, and IFVs
vehicles are included in the order. However, reports between 2018-2020. Swedens Special Operations Task
indicate that 40 vehicles are to be delivered and are Group has also been taking delivery of a number of
being manufactured in Poland. Patrias Polish partner 4x4 Bastion Tactical and Reconnaissance Vehicles from
has been producing AMVs for more than a decade Renault Trucks Defense.
under the name Rosomak. The AMV 8x8 has also, as of
August 2016, been submitted for a Qatari requirement.
As mentioned, Norway is to sell used CV90 hulls to

Estonia, providing its army with a significantly increased
operational capability and contributing to the greater
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EUROPE
Interested in this region? Key speakers at the International Armoured Conference
this year include:
Lieutenant General Paul Jaques

Chief of Materiel (Land)
DE&S - UK MoD
Major General Karl Engelbrektson

Commander
Army of Sweden
Major-General Vakhtang Kapanadze

Chief of General Staff
Georgian Armed Forces
Brigadier General Charles Beaudouin

Director Technical Section
French Army
Brigadier General Andrs Chapa Huidoro

Commander, Calvary Brigade Castillejos
Spanish Army

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AFRICA
While some African countries have experienced a and Uganda, for example, have made independent
high level of economic growth and prosperity in the steps into domestic assembly and production. As
past year, Africa remains an unstable region with Defence IQ has reported, African states will continue
many nations experiencing some of the worlds most to come to the realisation that they need increased
intense security threats, primarily owing to the surge in strategic capability. At the same time, there is a
Islamist insurgency. After a period of seeing Africa arm heightened belief among African governments that they
itself faster than any other continent with the greatest can take a more proactive and sustainable approach to
collective increase in military budgets worldwide, their involvement in the defence market. This includes
the regional market has retracted. Military spending a predicted expansion for regional companies, such
in Africa fell by 5.3 percent after 11 years of steady as Denel and Paramount Group, who believe African
increase, according to SIPRIs latest report. In spite of its nations will be increasingly more attracted to African
size and the multitude of nations involved, the African brands and the benefits they claim to offer to the total
market also accounts for just two per cent of the global regional market.
military market.
Foreign equipment imports are of note here. China
is now the third biggest global arms exporter and
Demand for infantry within Africa, Sudan is one of its main clients. Tanzania,
Morocco and Algeria have also become customers
mobile vehicles (IMV) of Chinese equipment in the past five years as

has Namibia and Cameroon in smaller number all
and IFVs is likely to purchasing relatively low-end technology. Russia has

long been an important supplier to a range of African
increase in response
states and Ukraine has found business in providing
second hand equipment. Indian vehicle manufacturer
to counterinsurgency
Tata Motors has supplied 585 military vehicles to
a variety of African countries for use in the United
operations
Nations Multidimensional Integrated Stabilization
Mission in Mali (MINUSMA) mission in Mali. Meanwhile,
U.S. donations and sales have been targeted chiefly at
strengthening nations fighting Islamist insurgencies.
Africas complicated security situation still presents
fertile ground for armoured vehicles sales. Demand Among the most notable of developments is that Mali
for infantry mobile vehicles (IMV) and IFVs is likely to has doubled its defence budget since 2013, following
increase in response to the aforementioned conflicts the ongoing conflict between rebels and French-
and counterinsurgency operations. However the led forces. The presence of various rebel groups
market for AFVs cannot be proportionally translated and Islamist terrorist organisations has resulted in
in sales as western intervention strategies in this area a significant increase in violence and deterioration
usually consist of the deployment of these vehicles to in security, and there is always a concrete risk that
support operations. violence could spill over borders. The EU has raised
its contribution to the Mali mission to provide $21.2
While conflict is no stranger to Africa, it is just as million in its 2016 budget allocation, which will be
important to recognise the positive progress that is used for training and new security provisions for
being made continent-wide, with more democratic staff. Meanwhile, China and Germany have recently
governments beginning to take shape and many announced further commitments to peacekeeping
economies seeing growth. Where armoured vehicles operations, with Canada on the verge of initiating a new
are concerned, local industry is fledgling but no longer mission.
confined to South Africa and Northern Sahara. Nigeria

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Multiple military and police security operations were
launched in Nigeria between 2015-2016 including
Lafiya Dole, Delta Safe, Gama Aiki and Awatse with
various goals ranging from the protection of vital assets
and communities to hostage rescue and the clearance
of embedded fighters from specific areas, usually with
military vehicles forming the core of the taskforce.
Operation Maximum Safety, for example, launched in
August 2016 to target bandits and kidnappers along
the Abuja-Kaduna highway, comprises 510 anti-riot
policemen, backed by 40 patrol vehicles and APCs.
A number of international partners are doing their part

in assisting Nigeria. The U.S. signed off a delivery of 24
MRAPs to the Nigerian military in early 2016, worth a
total of $11m. The vehicles were donated at the Ikeja
Malian forces operate the ACMAT VLRA among their fleet. Cantonment in Lagos.
Image Pierre Delattre
The Malian military currently operates Acmat VLRA and

PVP vehicles from Renault Trucks Defense, alongside
Multiple military and police
a fleet of 4x4 vehicles that include units armed with
14.5 mm ZPU-2 guns and .50 heavy machine guns.
security operations were
In September 2015 the US Department of Defence launched in Nigeria between
ordered 62 Bastions for five African countries via Mack
Defense. 2015-2016 usually with
In March 2016, Malis armed forces took delivery of a military vehicles forming the
number of Bastion armoured vehicles from Frances
Acmat. Troops were trained by Italian personnel core of the taskforce
serving with the United Nations mission (MINUSMA)
at the request of the Malian Chief of Staff, including
lessons on the detection and avoidance of IEDs. Based
on the VLRA TDN-TDE platform, the 12-tonne APC is Meanwhile, Nigerian media reported that the countrys
configured for troop transport, with the range featuring state-owned Defence Industry Corporation of Nigeria
STANAG 4569 protection and the capacity to carry 10- (DICON) launched a new Public-Private Partnerships
12 passengers. (PPP) unit in May 2016 with a new joint venture
with local armoured vehicle manufacturer Proforce
Nigeria remains involved in a serious struggle Limited. The development should see the design and
with Boko Haram (aka the Islamic State West Africa manufacture of new APCs for the Nigerian military.
Province), which continues to control most of the A prototype vehicle was scheduled to be ready in
North-Eastern territories and areas within Niger, September with first production vehicles expected by
Chad and Cameroon. Suppressing this insurgency is the end of 2016. Proforce was founded in 2008 and
therefore becoming an increasingly important step now specialises in armoured tactical vehicles and APC
towards maintaining control of much of West Africa for military and police use, aside to armoured private
and preventing a much larger-scale conflict. Several and commercial passenger vehicles. DICON the only
Nigerian soldiers have recently been killed by roadside legal small arms and light weapons manufacturer in
IEDs while on patrol duties, with armoured tanks and Nigeria has a Special Vehicle Plant that is currently
patrol vans also being destroyed in the blasts. August carrying out the refurbishment and upgrade of
2016 saw five suspects arrested for emplacing similar Scorpion light tanks, Steyr tracked APCs and MOWAG
explosive hazards. APCs.

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city of Sirte is currently seen as the final fortification for
Daesh forces within the country, but seizing the city is
proving difficult.
Given the uncertainty over the countrys future,

shipments of armoured vehicles to Libya in recent
months have been deeply controversial. A December
2015 shipment of 16 Streit Group Typhoon 4x4
MRAPs, along with a number of armoured cars, were
temporarily seized by Greece before the UN ruled
their transfer was legal once the newly recognized
government laid claim to the shipment. However, the
UN subsequently criticised Streit for the illicit transfer
of 131 Typhoons and Spartan patrol vehicles to Libya
in 2012, causing a diplomatic storm for Canada, where
Streit is registered. The investigation is ongoing.
Officials of the Nigeria Army receiving 24 Mine-Resistant
Armour Protected (MRAP) from the US government. South Africas defence budget shrunk in real terms
Image: TheCable this year, with just $3bn allocated for fiscal year
2016/17 a slight reduction on the back of more than
a 6 percent rate of inflation compared to $3.8bn on
A number of international partners are doing their part
5 per cent in 2015. Hopes of increasing the budget in
in assisting Nigeria. The U.S. signed off a delivery of 24
the near-term have yet to come to pass. The chief of
MRAPs to the Nigerian military in early 2016, worth a
the army announced in 2015 that the nations soldiers
total of $11m. The vehicles were donated at the Ikeja
are well prepared to defend the nation and to carry
Cantonment in Lagos.
out international missions envisaged by government,
including the pledge of an African Capacity for
Meanwhile, Nigerian media reported that the countrys
Immediate Response to Crisis (ACIRIC). Peace across
state-owned Defence Industry Corporation of Nigeria
the continent is viewed as a catalyst for economic
(DICON) launched a new Public-Private Partnerships
development, encouraging South Africa to ready for
(PPP) unit in May 2016 with a new joint venture
immediate intervention to hotspots in other African
with local armoured vehicle manufacturer Proforce
states. However, amid the budget restrictions, there
Limited. The development should see the design and
remains scepticism that the SANDF can meet these
manufacture of new APCs for the Nigerian military.
requirements, having already been stretched to and
A prototype vehicle was scheduled to be ready in
perhaps even beyond capacity.
September with first production vehicles expected by
the end of 2016. Proforce was founded in 2008 and
On the positive side, domestic business is seeing
now specialises in armoured tactical vehicles and APC
results. July 2016 saw state arms manufacturer Denel
for military and police use, aside to armoured private
Vehicle Systems ship its first batch of RG31 MRAPs to
and commercial passenger vehicles. DICON the only
the United Arab Emirates (UAE) Armed Forces. The
legal small arms and light weapons manufacturer in
RG31 is a Mobile Mortar Platform (MMP) boasting
Nigeria has a Special Vehicle Plant that is currently
44 capabilities, high-level mobility and enhanced
carrying out the refurbishment and upgrade of
protection in the face of explosive devices. While the
Scorpion light tanks, Steyr tracked APCs and MOWAG
size of the order has not been revealed, 73 Denel
APCs.
vehicles are already in UAE service and a second batch
was under testing at time of writing. The company
Libya is currently the stage of a high-intensity
was required to make around 30 improvements to
conflict between the UN-approved government, the
the performance and reliability aspects of the vehicle
international community, and Daesh militants. Although
based on assessments in the Middle Easts hot and dry
recent successes have been made in curbing the
operational environment. With a range of 800km at a
insurgency, the country is not likely to settle in the near
speed of 80 m/h, the RG31is widely used by UN and
future and remains at risk of falling back into civil war
peacekeeping forces.
if an authority cannot be established post-conflict. The

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Around the same time, the countrys Paramount Group
unveiled its 8x8 Mbombe 8 infantry combat vehicle, Cameroons Rapid Intervention Battalion (BIR) acquired
based on its previous Mbombe 6. This new vehicle its first batch of South African-made Ratel IFVs from
has a gross weight of 28 tonnes, a kerb weight of 19 December 2015, with at least 12 in service some
tonnes, and a payload of nine tonnes, which covers armed with 20 mm guns among light intervention
the weapon system, ammunition, crew and supplies. units deployed to the Far North province. The Ratels
Eight dismounts can be accommodated in addition to are reportedly being employed as engineering vehicles
three crewmembers, with the capability to integrate for mine-clearance and EOD operations.
a wide range of turrets and weapon stations. The
first advanced prototype of the Mbombe 8 has been Cameroon deploys around 24 LAV-150 Commando
undergoing mobility trials while production could take IFVs, five Type-07 APCs, six Type-07P/VN-1 IFVs, 12
place in South Africa or Kazakhstan. WMA-301 Assaulter armoured fire support vehicles,
30 AML-90s, six AMX-10RCs, 12 Ferrets, eight M-8s
and half a dozen VBLs. The country is also operating
the Israeli Saymar Musketeer in its Presidential Guard
Reconnaissance and Support Group, the first known
use of the vehicle. Based on a Toyota Land Cruiser
chassis, the six-seat vehicle is fitted with a remotely
operated weapon station with a 7.62 mm FN MAG
machinegun.
Following the removal of al-Shabaab from its major

strongholds in Somalia by African Union force
(AMISOM) in 2011, the group has carried out several
attacks in Kenya, including attempts to ambush military
convoys. Kenyas 2016/2017 defence and security
budget therefore allocated a $2.64bn to its services
and agencies, marking an increase on the $2.2bn
provided in the 2015/2016 financial year.
The 8x8 Mbombe 8 infantry combat vehicle manufactured by
South Africas Paramount Group which was unveiled in June, At the start of the year, the Kenyan police
2016. Image: Paramount Group commissioned 30 Chinese-made Norinco VN4 light
armoured vehicles some armed with a version of
the 7.62 mm FN MAG machine gun for use in the
With Boko Haram spilling into Cameroon, the country paramilitary General Service Unit (GSU) for anti-
is having to find new methods and resources to terrorism, international peacekeeping, and local police
deal with insurgents. The start of the year saw the missions. At least six of these vehicles were known to
government forced to close some of its borders with be deployed to Boni Forest and Lamu in March.
Nigeria to prevent militants from crossing over. Several
dozen people have died from recent suicide bombings Also of note, Inspector-General released a statement
and the country had incurred human and material in July 2015 ordering anyone in the country in
loses from landmine emplacement. possession of an armoured vehicle to declare it and
obtain mandatory approval. All armoured vehicles
The United States is offering assistance by training must now meet the requirements of the newly enacted
the Cameroon military in techniques of detecting and Security Laws (Amendment) Act 2014 which states that
countering IEDs, but protective vehicles are necessary such vehicles must have special certificates from the
for troop transport. The US therefore ordered 15 government.
Acmat Bastion armoured vehicles from France for
Cameroon in 2015. In addition, the US DoD has signed
a $378m contract with Oshkosh Defence for the supply
of 1,543 armoured vehicles from the companys Family
of Medium Tactical Vehicles (FMTV) to Cameroon,
Somalia and Iraq.

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Egypts security forces received an initial shipment
of MRAPs from the U.S. in May, with a total of 762
vehicles scheduled to be transferred throughout the
year. Originally designed for US military operations
in Afghanistan, the vehicles form part of the DoDs
Excess Defense Articles grant programme, in which
the vehicles are being transferred at no-cost to the
government of Egypt to combat terrorism.
In its fight against terrorism in North Sinai, hundreds

of Egyptian security personnel have been killed by
roadside bombs. However, Egypt has refused to
take part in the Saudi-led operations in Syria. On the
opposite side of the country, there are rumours that
Egypt could intervene militarily in Libya to safeguard
its own security, which would include ground-force
operations and the securing of Libyas ports. Like the The first shipment of MRAP (Mine Resistant Ambush Protected)
U.S., other international states see Egypt as a pivotal vehicles from the United States arrived in the port of Alexan-
dria for delivery to the Egyptian military, 12 May 2016.
role in restoring stability in the MENA region.
Image: US Gov
Africas falling expenditure can mainly be attributed to countrys armed forces become more decentralised,
the huge cut in budget by Angola, which has long been they have been seen as playing an important role in the
the largest defence spender in sub-Saharan Africa. nations young democracy. Budget increased to $14.5
Falling oil prices have forced Angolas hand, following bn in 2016, with post-revolution governments investing
a 176 per cent increase in military spending between in new equipment to counter serious security threats
2004-2014 and a record (for an African state) annual still facing the country and wider economic growth
budget of $10.4bn in 2015. Had oil not dropped, being forecast.
analysts had been forecasting a rise to $13bn by 2019,
a figure now apparently far from achievable. In efforts to ensure democracy continues, international
governments have also been quick to provide support
In 2014, Germany-based Rheinmetall and project to Tunisias military power, including several donations
developer Ferrostaal industrial group were due to sign of vehicles. In May 2016, the U.S. provided 48 jeeps
a deal with Algeria for 980 Fuchs 2 armoured personnel among a package worth around $20m. More recently,
carriers and a vehicle factory. The deal is part of a wider Germany announced plans to give Tunisia (and Jordan)
arms package between Germany and Algeria, valued funds to buy armoured vehicles to help combat Daesh.
at around 10 billion euros. Cooperation between the The exact figure was not revealed but the double-digit
two nations has seen Algeria at the top of Germanys million sum will come from a 100 million euro crisis
arms export customers in 2013, shifting equipment prevention fund to strengthen partner states south
from tank parts to SUVs at a value of well over $1 of the European Union. Military equipment was also
bn. Algeria also formed a partnership with the UAE pledged by Russia in March 2016 after Tunis requested
to jointly produce NIMR vehicles for its military, police Moscows assistance in preventing militants from
and peacekeeping forces. These are designed to not crossing the border from Libya.
only be a modular, flexible option but also specifically
integrated with a high grade cooling system to cope Uganda is facing an internal crisis of widespread
in excessively hot climates. In 2012, Algeria began an unemployment amidst constrained growth, with trade
order of 300 T-90 tanks from Russia to compliment imbalances further aggravating the situation. In 2015,
its 325 existing T-72s, as well as 150 T-62s, and 270 the countrys defence budget rose by 10.8 percent with
T-54/55 tanks that are reaching the end of their the bulk of expenditure financing operations of the
usability. UPDF peace keeping mission in Somalia (offering the
largest African Union contingent to the mission as well
Following Tunisias political revolution, a transition has as building up land forces and special equipment.
occurred in civil-military relations, as not only have the

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Like Tunisia, the UPDF has taken armoured vehicle intended to end five-years of post-Independence
donations from the U.S., including a delivery of bullet- conflict, but with violence flaring in July 2016, and
proof Land Cruiser SUVs, a dozen MRAPs, and three despite the implementation of a ceasefire, the peace
training vehicles. However, Ugandas military chief has agreement is in danger of falling apart. The presence
stated that frustrations with international partners and of other factions, such as the Lords Resistance Army
disagreements over training efforts will see Uganda (LRA), have exacerbated the violence. Members of
withdraw its troops from Somalia by the end of 2017. the Ugandan Peoples Defence Forces (UPDF) have
remained operating in the country, particularly within
In industry developments, the UPDF has established the Western Equatoria State, undertaking operations
its own facility to refurbish and reassemble APCs against these belligerents and prepared to return to
and other vehicles at its Magamaga army barracks. Juba if the crisis flares again.
Developments in local assembly are emerging hand-in-
hand with development of the countrys metal works Various, smaller developments have been taking
industry and efforts to adopt or train skilled engineers. place among other nations, including those involved
in conflict and those operating in a peacetime
Senegal is equipping its armed forces under the or peacekeeping environment. Security forces in
Armees Horizon 2025 project, which is aimed at Mozambique, for example, deployed this past year
enhancing personnel and equipment for the Defence on the streets of the capital Maputo after rumours of
Forces amid a proliferation of threats. The military planned anti-government demonstrations circulated
operates around 50 AML-60/90s, ten M-8s, 12 M-3 on social media. Although no open civil unrest
Panhards, ten M-3 half-tracks, eight Casspirs, 25 Ratel- occurred, the use of armoured vehicles to dissuade
20s and a number of M-20s. In April 2016, Senegal demonstrations illustrates the current tensions with
unveiled its Norinco WMA301 6x6 Assaulter armoured state authorities. The Mozambican Armed Forces
fire support vehicles, alongside a WZ551 command (FADM) has been combating Renamo rebels in spite
vehicle and Israeli Ram Mk III armoured vehicles, during of reports that less than 10 percent of its armoured
its independence day parade. It is understood the vehicle fleet was not fit for service as of 2014.
Rams are being used on behalf of the UN operation in
Cote dIvoire (UNOC). Mauritania acquired at least a dozen Turkish-made
Otokar Cobra armoured vehicles in 2016 as forces
A cash-strapped Zimbabwe government signed off joined the UN mission in the Central African Republic
a $380m defence budget in 2015 up from $356m (MINUSCA). Some of these are armed with a Chinese-
with around $50m intended for the procurement made 12.7 mm W85 heavy and PK-pattern 7.62 mm
of 633 armoured vehicles, including all-terrain troop- machine guns, while at least one is configured as a
transport trucks, along with water cannon and anti-riot recovery vehicle. Ethiopia retains a powerful military
equipment for its military and police forces. However, force that boasts hundreds of T-72 and T-55 tanks in
severe socio-economic pressures on the population spite of a sliding defence budget. Local industry has
have left the government fearing an Arab Spring-style developed the ability to manufacture and refurbish its
uprising. September 2016 saw government announce Soviet-era armoured vehicles and the armed forces
that it will issue bond notes that will be traded one- have acted on a strategic front-foot, aggressively
for-one for U.S. dollars and will be backed by an policing its borders and pre-emptively attacking threats.
international loan. This announcement has sparked In 2015, 3,000 Ethiopian armoured units were said to
fears of hyperinflations return and set off public have crossed into Somalia to attack al-Shabab militants,
protests. With unemployment now at around 90 per and new confidence in the process towards peace has
cent and President Robert Mugabes grip weakening, since been expressed.
transition in the country seems inevitable in the near
future.
Last year, South Sudan, Africas newest nation, was

said to have arranged an $850m budget around 15
per cent of its GDP in order to suppress rebellion
shortly after the countrys insurgency gave rise to
civil war in 2013. A peace deal signed in 2015 was

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AFRICA
this year include:
Major General Idriss M Alkali

Commander Armoured Corps
Nigerian Army
Brigadier General Thomas Oppong-Peprah

Chief Staff Officer
Ghana Army HQ
Brigadier General Jack Singyangwe

Chief of Policy, Doctrine and Strategic Branch
Zambia Army

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MIDDLE EAST
The Middle-East accounts for over 15.8 per cent involvement of the international coalition in the country
of the world fleet (23,511), with active procurement is unlikely as it would likely face strong opposition
programmes in Bahrain, Iraq, Israel, Libya, Qatar, among the public.
Saudi Arabia and the UAE, and increased spending on
armoured vehicles forecast until at least the end of the When it comes to the armoured vehicles market,
decade. the Middle Eastern market remains fragmented. The
stronger economic powers in the region continue
Despite the successes that have been achieved by the to modernise their inventories and expand their
international community in Iraq and Syria the Middle capabilities. On the other hand, many war-torn
East remains highly unstable. The conflict in Syria has countries in the region do not contribute much overall
seen the involvement of all the major regional countries to regional market demand or supply, being in a
states, including Turkey, Iran, Saudi Arabia and Jordan, position of seeing a great deal of AFV activity but not
which all still have military deployed. There are no signs actively shaping the commercial trends.
that the situation will significantly improve within the
next year. Saudi Arabia is now the second biggest arms importer
in the world (after India), having doubled its defence
At time of writing, the offensive carried out by US- budget in the last five years and becoming a leading
backed rebels, with the support of coalition air strikes, customer for US exports. At the same time, the Saudi
has liberated the northern city of Manbij, effectively government has initiated a National Industrial Clusters
cutting off supply routes to the Daesh strongholds of Development Program with a goal to double the
Aleppo and Raqqa. Despite Daesh being viewed as manufacturing sectors contribution to the GDP by
the common enemy, there are many complex factors 2020.
influencing the outcome of the conflict. Assad, the
anti-governmental rebels and the Kurds all remain At the beginning of the year, it was announced that the
fundamental sources of disagreement among the anti- country was set to receive 200 armoured vehicles from
Daesh factions, indicating an inevitable continuation of France (Renault Trucks Defense), consisting of 100 VAB
conflicts, claims and coups for years to come. Mk3 6x6 APCs and 100 Sherpa Light tactical vehicles,
for the Lebanese Armed Forces (LAF). The order was
The violence in Yemen is also feeding regional part of a $3bn package of French defence equipment
instability. There is a high risk that the power vacuum that Saudi Arabia pledged in 2013 to provide to the
created by this conflict will strengthen the power of LAF, but that it suspended in February citing a political
AQAD and Daesh within the country, leading to a disagreement with the Lebanese government. Saudi
Syria-like scenario. Despite the remote geographical Arabia was obliged to honour the contract with Renault
positon and the countrys lesser strategic importance, and is adopting the vehicles internally.
Yemen is becoming the stage of a proxy war between
the two giants of the region: Iran and Saudi Arabia. The In more positive news for the state, a $1.15bn potential
involvement of these external actors in the country has sale of military equipment was approved by the U.S.
arguably exacerbated the violence, resulting in a need State Department in August, including conversion work
for major security provisions in the near-future. for 133 M1A2S Abrams tanks and 20 battle damage
replacements for the existing fleet. Saudi Arabia is
While the international community has withdrawn also seeking to obtain M88A1/A2 Heavy Equipment
most of its troops, the situation in Afghanistan remains Recovery Combat Utility Lift Evacuation Systems
unsettled. The Taliban launched their offensive (Hercules), and Armored Recovery Vehicles (ARV) for
Operation Omari in April 2016 and since this time the Royal Saudi Land Forces (RSLF).
the number of casualties has risen sharply, calling for
troops to be deployed outside major bases. Despite
the frequent attacks and the widespread violence a re-

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Turkey increased its defence and security budgets to be completed in 2018. Serial production will then
by 20 percent in 2016, bringing the figure to a total begin, with all 180 tracked and 76 wheeled armoured
of $21.2bn. The hike came amidst the countrys vehicles to be delivered to TLFC by 2020. The tracked
involvement in Syria, an attempted military coup, and variant will be based on the companys Kaplan-20
a fresh political alliance with Russia, all of which has platform, while the wheeled system will use the Pars
caused great concern in the West. 4x4 vehicle as the base carrier.
Mountains along Lebanons northern frontier is

often witness to a spill of combat between Daesh and
other Syrian militant groups, requiring keen attention
to border security. To assist in this effort, the U.S.
delivered 50 armoured vehicles to the Lebanese army
in August amongst other land equipment at a value
of $50m. The broader American military aid package
makes Lebanon the fifth biggest recipient of U.S.
military assistance. The current government is seen
as vulnerable at this time and international support is
seen as a necessary dam to destabilisation.
However, this past year saw Saudi Arabia suspend

its $3 billion security commitment to Lebanon over a
diplomatic dispute. That deal was intended to see 200
French-made (Volvo-Renault/ODAS) armoured vehicles
The Otokar Cobra II 4x4 is being supplied to Turkish security
sent to Lebanon, including Sherpa Light 4x4 armoured
forces at a cost of 106.1m.
tactical vehicles and VAB Mk3 APCs.
In July, domestic vehicle giant Otokar was contracted

to supply COBRA II 4x4 tactical wheeled armoured
vehicles to Turkish security forces at a cost of 106.1m,
including maintenance and support systems. Deliveries
are under contract to begin towards the end of 2016
through to the first quarter of 2017. Otokar revealed
that the COBRA II had successfully passed desert and
amphibious terrain and hot climatic condition tests.
Otokar also announced in August that it had submitted
its final offer to the countrys armament procurement
agency, the SSM (Savunma Sanayii Mstearl) to
begin serial production of the Altay MBT for the Turkish
Land Forces Command (TLFC), including features
ranging from a 120mm/L55 calibre smoothbore gun, a
power pack consisting of 1500 hp diesel engine, and a
situational awareness system for 360 coverage. 100 VAB Mk3 6x6 APCs were set to be provided to Lebanon
via Saudi Arabia, but political disputes have stalled the
Earlier in the summer, SSM awarded FNSS Savunma agreement. Image: Renault.Trucks Defense
Sistemleri (a joint venture of Turkish conglomerate
Nurol Holding and BAE Systems) a contract for the
purchase of 260 self-propelled anti-tank systems. The
contract will meet the requirements of the anti-tank
vehicle project (Silah Tayc Ara). Under this contract,
all design, development, and prototype qualification is

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Since 2011, Jordan has taken in around 700,000
Syrian refugees, but is desperately trying to balance its NIMR Automotive a subsidiary of Tawazun Holdings
security measures with its aid provisions. The defence and the UAEs leading armoured vehicle producer
budget has struggled to increase but saw a marginal rolled out its one-thousandth vehicle in June 2016 at
rise from 2011-2015 (0.27 percent), with projections for the Tawazun Industrial Park in Abu Dhabi (from its
further gains over the next five years. AJBAN 440A line, a lightweight armoured utility vehicle).
This landmark symbolises an important point in the
In May, a partnership was formed between South establishment of the countrys modern production
Africa-based Paramount Group and Jordan system. Tawazun itself has grown over the years
Manufacturing Services Solutions (JMSS) to begin local thanks to its creation of a number of international
production and assembly of a bespoke version of the partnerships, such as with South Africas Denel.
Mbombe 6x6 IFV for the Jordanian Armed Forces. Business for NIMR therefore includes a $63m contract
The work is taking place at the Dulail-King Abdullah with the U.S. to manufacture Denel RG-35 MRAPs at its
II Design Development Bureau (KADDB) Industrial UAE facility with completion scheduled for the end of
Park. 50 units are due to be delivered with the first 25 2017.
vehicles expecting to be completed by the summer of
2016. Involved in the production are Jordan Advanced Towards the start of 2016, it was confirmed that the
Machining Company (JAMCO), manufacturing the turret UAE had agreed to the sale of a fleet of 8x8 AMV
and pestle mounts, and Aselsan Middle East, providing (armoured modular vehicles) from Finland-based
the intercom systems. The Jordanian Mbombe will be Patria. While the number of vehicles being produced (in
built to withstand the extreme regional climates, having the Poland facility, rather than in Finland) and delivered
undergone trials that included 50-degree Celsius was not confirmed, it is believed to be in the range of
desert environment operation, as well as -50-degree 40, and will join the small number of AMVs already in
Celsius winter trials. UAE possession since 2008.
The Patria 8x8 AMV has since expanded its profile in

the Middle East with confirmation in August 2016 that
NIMR Automotive rolled Patria Land Systems had submitted the vehicle for a
Qatari significant requirement. No date has yet been
out its one-thousandth announced for a decision on this procurement. Qatar is
modernising its armoured forces and is in the process
vehicle in June 2016 at of taking delivery of 62 Leopard 2A7+ tanks and 24 155
mm PzH 2000 self-propelled howitzers.
the Tawazun Industrial Qatar is involved in one of its largest-ever military
Park in Abu Dhabi engagements, with hundreds of troops in Yemen
combating Houthi rebels. However, this comes at a
time when oil prices are down and pressures on the
national economy forcing cutbacks.
The UAE is currently involved in the air and ground This past summer, the Israeli Defense Ministry
operations in Yemen as part of the Saudi-led campaign. unveiled its new APC Eitan offering an upgrade in
From November 2015, Yemeni forces arrived in dozens terms of protection and sophistication. It is capable of
of UAE-supplied military vehicles on the front line at seating up to 12 soldiers and, with a 750 hp engine,
the battle for the city of Taez, which had been under can reach speeds of up to 90 km p/h. The vehicle will
siege for weeks by Houthi forces. Further security be introduced to operations alongside the IDFs Namer
vehicles (non-armoured) have since been donated (Leopard) APCs and will be equipped with an active
from the UAE to Yemen to bolster the mission. The interception defense system capable of intercepting
latest available SIPRI figures for UAE defence spending incoming anti-tank missiles, similar to the Trophy
(2014) puts the state in 14th place on the world table, system already employed on selected IDF tanks. Israel
registering a 136 percent increase from 2006-15. plans to gradually replace all of its ageing M-113s.

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In spite of its advanced features, the Defense Ministry
has expressed concerns that its wheeled configuration
may be more susceptible to missiles than a tracked
option.
Ever on the cutting-edge, Israels key vehicle

developments in the last 12 months have been in
enhancing vehicle crew and passenger survivability,
with technology that provides improved situational
awareness and visibility without exposing troops. This
is a particularly vital capability when it comes to the
urban combat environment, within which Israeli troops
often find themselves (such as in Operation Protective
Edge, 2014). These advances have emerged from
Elbit Systems, including the Dragon advanced firing
system being installed on IDF Achzarit APCs and Puma
armoured engineering vehicles. Using external cameras Irans Tiam MBTwas displayed publically in April 2016.
and radar, Dragon identifies distant targets at day or Image: Tanks Encyclopedia
night, under various weather and battle conditions,
Irans defence budget remained relatively flat between
and delivers short bursts of accurate fire at an effective
2014-5 at $10.3bn, following a drop in 2012 as a result
range of 1,500m.
of temporary EU sanctions. New negotiations in 2016
between Iran and Western states could lead to a rosier
August 2016 also saw Elbit unveil IronVision, its helmet-
economic outlook in the near future.
mounted system designed to allow APC and tank
crews the ability to see through the vehicle armour,
The country unveiled new vehicles in April 2016 at a
360-degrees and in real-time, by feeding from camera
showcase event. These included its newest MBT, known
sensors stationed around the platform. The IDF is
as the Tiam, which is apparently an amalgamation
reportedly testing the technology before making a
of U.S. and Chinese parts the hull of a M47M tank
decision on whether to acquire, as it is with Elbits
(produced in Iran from the 1970s) and a 105mm gun
SupervisIB, a mobile electro-optical lookout system that
mounted on a turret found on Type 59.69 Chinese
uses day and night sensors to generate a panoramic
tanks.
picture equivalent to approximately 150 thermal
imagers placed side by side.
Also unveiled was a nuclear, biological, and chemical
detection (NBC) vehicle called the Shahram a BTR-60
APC fitted with NBC sensors and protection systems
several refurbished Shir vehicles (an Iranian version
of the Chieftain) and T-62 tanks. The event did not
showcase Irans rumoured Karrar tank, an in-the-works,
domestically-built vehicle intended to rival the T-90
for capability. A tank fitting this description appeared
briefly on Iranian television footage several months
later.
Following Kuwaits announcement that it will be

spending an extra $1bn on defence and security
each year for the next decade, the government has
reportedly held a meeting with the Kuwaiti National
Guard (KNG) to discuss requirements, including plans
to buy new military vehicles. In October 2015, Prime
Israels Eitan 8x8 APC was unveiled in 2016 Minister Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah
attended a three-day visit in France resulting in a

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light armoured vehicles (all-terrain Sherpa trucks saw a slight dip from $1.8bn to $1.73bn. However,
offering 360-degree firepower, IED blast protection and the national market is expected to grow in the coming
the ability to carry up to four people) and maintenance years, driven by needs for military modernisation and
of its patrol vehicles. An agreement has been reached increasing threats from domestic terrorism.
on cooperation between Kuwaiti financial institutions
and the French public investment bank Bpifrance Forces in Kazakhstan received the first allocation
regarding joint investments of $510.6m in French of its new Arlan multipurpose armoured vehicle in
technology companies. August 2016. These vehicles are being produced by
Kazakhstan Paramount Engineering (KPE) a joint
Prior to this, Kuwait contracted Rheinmetall to supply venture between South Africas Paramount Group and
12 state-of-the-art armoured NBC reconnaissance state-owned Kazakhstan Engineering and is based
vehicles (the 2 NBC-RS Sprfuchs). That order also on Paramounts Marauder MRAP. Designed to carry
included comprehensive support in the form of ten military personnel, the vehicle can perform a wide
training, service and spare parts. Delivery of the NBC- range of functions, including fire-fighting missions. As
RS vehicles will commence in 2017. per the companys pioneering work in blast protection,
these vehicles can withstand 50kg of explosives from
Iraq has seen the largest defence budget increase the side, 8kg under the vehicle, and 14kg under the
in the world between 2006-2015 (at 536 percent), as wheels. Having been adapted to the hot regional
it has been rebuilding its armed forces rapidly post- climate, an agreement has already been reached
coalition withdrawal to contend with Daesh and Taliban between Kazakhstan and Jordan (another Paramount
insurgents. Spending equated to $13.1bn in 2015, up customer) to receive deliveries of the Arlan.
35 percent from 2014.
KPE also unveiled its Barys variation on the Mbombe
Among notable procurements, Iraq made a $66m deal 8x8 which are now being produced at the 15,000sqm
in April 2016 with the U.S. DoD to receive 60 Textron assembly plant opened in 2015 in the Kazakh capital
Commando Select APCs. This includes 54 APCs with Astana. The version of Barys displayed at KADEX
40/50 turrets, each armed with a 40 mm automatic 2016 was fitted with the Russian AU-220M stabilized,
grenade launcher and a .50 calibre machine gun; four remotely controlled turret mounting a 57mm automatic
command variants with 40/50 turrets; and two APCs cannon.
without turrets.
The fight against Taliban offensives has continued to
Iraqi Special Operation Forces (ISOF) also known rage in the past twelve months in Afghanistan, with the
as the Counter-Terrorism Service (CTS) were seen Afghanistan National Army (ANA) coordinating its push
with new vehicles during operations in Mosul in into captured towns with accompanying air strikes.
June, consisting of black-painted Oshkosh M-ATVs
(not previously seen in Iraqi service), fitted with Additional military equipment was ushered into
remote weapon stations armed with heavy machine Afghanistan between 2015-2016 in order to bolster
guns, automatic grenade launchers, mast-mounted the ANA. Part of this has involved a $56.2m contract
surveillance cameras and antennas possibly for use to Textron Marine & Land Systems for the delivery of
as IED jammers. Also seen were a number of Caiman 55 additional Commando Select Armoured Security
MRAPs with additional armoured plates. Meanwhile, Vehicles, which were delivered in February 2016.
the Iraqi Army has been employing M1A1 tanks and
M109 self-propelled howitzers in its fight against Daesh A 2016 watchdog (the Special Inspector General for
militants. Afghanistan Reconstruction) report claims that the
U.S. five-year commitment to maintain vehicles for
Interestingly, the Baghdad Post reported in August Afghanistans military and train local troops to take
that Iraqi security forces were preparing to deploy at care of its fleet had seen its cost more than double
least one robotic unmanned vehicles equipped with an to $423m due to insufficient oversight. As of August
automatic machine gun to better their chances amid 2016, the U.S. has spent more than $17bn to provide
the Mosul offensive. The UGV was said to have been weapons, ammunition, and other military equipment to
equipped with four cameras and a launcher for on- Afghanistans police and armed forces.
board Russian-made Katyusha rockets.
From 2012-2016, defence expenditure in Kazakhstan

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MIDDLE EAST
this year include:
Brigadier General Fahd Faleh Al Dhamen

3rd Division Commander
Jordan Armed Forces
Major General (Rtd.) Carey Wilks CB CBE

CChief Operating Officer
NIMR Automotive

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ASIA-PACIFIC
Attempts to expand land and maritime territory armoured vehicles for years to come. Due to the typical
and the emergence of stronger military capabilities terrain across much of the region and the asymmetric
in the Asia-Pacific region makes for a difficult security nature of modern conflicts, LAVs and 8x8 APCs will be
landscape. Overall the military expenditure of the the key types of vehicles under contract in the Asian
region in the last five years remained steady with market, but precautionary border security measures
no country drastically changing its defence budget. and the need to appear prepared for conventional
However, widespread political unrest and the presence warfare should also stimulate demand for heavy
of various insurgent groups could lead to an increase in armour.
expenditure in the near-term.
As mentioned, China sits at the heart of defence
decision in the Asia-Pacific region. The presence of US
In spite of many of these forces operating in the region and the high volume of
defence systems sold by the US to Taiwan ($46bn) are
states taking a defensive issues of concern to Beijing, which has strengthened

its presence on the territory to reassert its sovereignty
posture, few are eager to claims. Likewise, its long-running animosity with Japan
has not been helped by an expansion of Japanese
trigger an arms race or

security activity and partnerships with the West.
Beyond the maritime areas, low intensity skirmishes
risk a full-scale conflict

have also been seen at the Tibetan border, while
continued sabre-rattling from North Korea is arguably
jeopardising Chinas interests. Overall China sees many
reasons to retain a strong military including a recent
announcement to expand its peacekeeping role in
While its domestic situation is quite stable, China is Africa and will undoubtedly continue to expand as
not only seen as a threat to the security of the region its economy remains particularly healthy. With this
but perceives many of its regional neighbours to be a in mind, the country is understood to have raised
threat to its own territories. Areas of the South China military spending by 7.6 percent in 2016 to $146.67 bn,
Sea remain hotly disputed between the likes of Japan, representing its lowest increase in six years, with more
Vietnam, Brunei and Malaysia. 2016 saw Beijing reject resources said to be diverting to intelligence activities.
the decision of an international tribunal which ruled
in favour of the Philippines over one such territorial China North Industries Corporation (Norinco) has
claim. This has enflamed tensions and sparked further ramped up production and sales for domestically-made
increase in military activity and procurement proposals armoured vehicles. In 2016, the company developed a
across the region. However, in spite of many of these 6x6 VN2C mine-resistant vehicle similar to its earlier
states taking a defensive posture, few are eager to WMZ-551 APC and armed with a 12.7 mm and 7,62
trigger an arms race or risk a full-scale conflict. mm machine gun, eight electrically operated grenade
launchers, and space for additional turrets.
Despite the low risk of high intensity conflict, demand
in Asia for AFVs is set to increase. Aside to Chinas large Chinese media sources in late 2015 stated China had
military deployment along its borders and the influence retired its fleet of Type 89 (PTZ89) tank destroyers,
this is having on the military capabilities of surrounding around 100 of which had been in service since 1989.
states, both Taiwan and South Korea remain attractive 25 years of modernisation has allowed the country
markets for western military exports. India remains the to acquire significant advancement with tanks when
principal growth market thanks to its surging economy, it comes to armour, protection and large-calibre
and tensions along its borders with Pakistan and China guns, eliminating the need for thinly protected and
may well lead to a further increase in the demand for specialised tank destroyers.

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International exports of Chinese armoured vehicles
continue to progress as far afield as Africa and Latin
America. For example, April 2016 saw Senegal unveil
its newly delivered batch of 12 Norinco WMA301
Assaulter armoured fire-support vehicles. July 2016
saw Bolivia take ownership of 27 Chinese Tiger 4x4
combat vehicles and four riot response vehicles in a
$7.7m contract that falls under a bilateral cooperation
agreement. The vehicles have been developed and
built by Shaanxi Baoji Special Vehicles Company. The
China Tiger is a high-mobility, all-weather vehicle that
can carry up to nine fully equipped infantrymen and a
crew of two.
India has experienced instability in the Kashmir region

resulting in its highest surge in violence for years.
Clashes between activists and police have required
military involvement, but have also resulted in the Indias armed forces are to benefit from a new wave of
deaths of soldiers. The Indian central government has equipment upgrades in its defence spending boost.
increased its military presence in this region, but with Image: Wikimedia
no clear long-term strategy, the risk of an increase in
insurgent activity will be of concern to New Delhi. In other companies ranging through Tata Power SED,
the past year, a heightened army presence in the north Reliance Defense, Rolta, Punj Lloyd, Titagarh Wagons
has already seen 100 T-72 MBTs shifted to eastern and the public sector Ordnance Factory Board (OFB).
Ladakh to dissuade frequent Chinese incursions, while The FICV will be an amphibious, armoured, tracked
Panthera-T6 APCs have been mobilised in Kashmir to and air-transportable troop-carrier that can fire four-
protect troops from insurgent small arms fire and mob kilometre range anti-tank missiles and will replace the
violence. Indian Armys Russian-made BMP II second-generation
infantry fighting vehicles in use since the 1980s. Three
Equally, memories of the Mumbai terror attacks of shortlisted consortia will develop an FICV prototype,
2008 have barely faded and an increasing use of the with the MoD contributing 80 percent of the cost.
military in counter-terror activity across the entire
country is said to be largely supported by the Indian In August 2016 it was reported that Russias JSC
public. With these issues under consideration, Indias Rosoboronexport and Indian railroad hardware
Defence Ministry is planning to boost defence spending producer Texmaco Rail and Engineering (TRI) had
by $233bn over the next 11 years, with resources signed the agreement on the development and
primarily being driven into the procurement of new manufacturing of military hardware for the Indian
military hardware, much of which the government Armed Forces. This will see the transfer of Russian
hopes will be manufactured in India. The MoD also technologies to India and licensed local production of
wants a hike of around eight percent in capital Russian BMP-3 IFVs among other armoured vehicles
spending annually in budget to buy or produce new and spare parts. October meanwhile saw the Indian
equipment. Army place an order for 250 Mine Protected Vehicles
(MPVs), which are routinely spotted on the streets and
Of major interest to the market will be the progress of highways of Jammu and Kashmir and states in North
Indias recently revived Future Infantry Combat Vehicles Eastern India. Deliveries are expected to begin in
(FICVs) competition, which will award the largest ever 2018 to augment the fleet of Casspir MPVs currently
indigenous contract at a value of $8.93bn. Ten Indian deployed by the Army and Central Armed Police Forces
companies have formed consortia to compete to (CAPFs).
supply 2,610 of the selected vehicle. These include
Tata Motors and Bharat Forge Ltd, General Dynamics
Land Systems (GDLS), L&T and Mahindra, and several

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Long-running tensions with Pakistan have not been borders. Clearly, Japans defence policy is shaking off
helped by tit-for-tat exchanges of fire between the many of the constraints of its post-war constitution
two nations in the Kashmir region in recent months. and sees no reason to not obtain the same benefits
Currently Pakistans defence budget is the lowest in the within the international defence markets as other
region, with around $7bn allocated in 2015-16 (around regional nations. In producing high-end indigenous
2.3 percent of its GDP), a mere fraction compared military technology, it stands to see opportunities to
to India. It is attempting to expand both its military support the economy. At the same time, the significant
capabilities and its defence-related economy assets capability of the Japan Self-Defence Forces (JSDF)
through a number of newly formed bilateral deals, is now likely to join other major military powers in
including fresh agreements with Russia, Indonesia and international operations.
South Africa.
As part of the new framework, Mitsubishi Heavy
The main phase of Pakistans (terrorism counter- Industries (MHI) has been in talks with the US over a
offensive) Operation Zarb-e-Azb concluded in April potential possible partnership to develop armoured
2016, resulting in the lowest number of terrorist attacks vehicles for the United States and possibly other
in the country since 2008. Up to 30,000 troops and foreign customers. According to analysts, building a
armoured vehicle forces were involved in the operation, defence system for an export customer could give MHI
all with the aim of stifling al-Qaeda and its affiliates in more control of its intellectual property and simplify the
the region. However, security efforts do not simply end, approval process to sell more of its products overseas
and as such, demand for armoured vehicles in Pakistan in the future. MHI already produces Japans main battle
remains high. With the economy stumbling, Islamabad tank and its vehicles are highly regarded for their
is struggling to acquire the counterinsurgency vehicles heavy-duty tank engines, gear technology and water jet
it needs to protect its government and military officials. propulsion systems.
In recent years, the government has been averse to

importing surplus vehicles, particularly from the US,
but did approve a $198m foreign military sale for 160
Japans Ministry of
MaxxPro MRAPs in 2014. Other recent deals discussed
in recent years have been the acquirement of General
Defence awarded
Dynamics Dragoon four-wheel-drive armoured fighting
vehicle and the Chinese VN1 eight-wheel-drive AFV.
BAE Systems a $149m
Pakistan is also in the process of evaluating a number
of tanks under its Haider programme, envisaged as a
contract for 30 new
new MBT to supplement the (Chinese-derived) al-Khalid
MBT fleet. Rumoured tanks under consideration for
AAV7A1 assault
Haider include Turkeys new Altay vehicle, although it is
likely that such a vehicle would simply augment a more amphibious vehicles
diverse range of vehicles.
Over 10,000 Bangladeshi troops contribute to the In early 2016, Japans Ministry of Defence awarded
UNs peacekeeping forces, which is more than any BAE Systems a $149m contract for 30 new AAV7A1
other country. Bangladesh is an equalising power in assault amphibious vehicles (AAVs). These vehicles will
the region and pioneered the creation of the South be AAV7A1 Reliability, Availability, and Maintainability/
Asian Association for Regional Cooperation (SAARC) Rebuild to Standard (RAM/RS) variants which provide
in the 1980s. It is currently going through a multi-year a more powerful engine and drive train, as well as an
modernisation period, which includes the potential upgraded suspension system, allowing the new vehicles
upgrade of its ageing T-54/Type 59 and Type 69 main to meet or exceed original AAV7A1 performance.
battle tanks. Production was scheduled to begin in August 2016
and final vehicles deliveries expected by the end of
Amid the widespread tensions, Japan approved its 2017. The contract includes tools and test equipment
largest ever defence budget this past year at $44bn. as well as training aids. The US Marine Corps is also
In tandem with this investment, the country signed in considering a new amphibious vehicle programme.
new laws to ease long-running restrictions on Japanese
military personnel from operating outside of national
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The Republic of Korea (ROK) has budgeted $36.49bn Singapore raised its defence budget in 2016 by 6.4
for 2017 defence budget, marking a 4 percent increase percent on the previous year, taking it to $10.2bn and
on 2016 and a record high for the countrys history. marking the fastest rate of growth seen in the country
Over a quarter of this budget is expected to be spent for five years. Defence expenditure also increased
on defence modernisation, including procurement as a proportion of GDP for the second consecutive
and research and development. The nation of course year, rising to 3.4 percent. Owing to the injection, the
remains in a tense diplomatic gulf with the DPRK and a Singapore Armed Forces (SAF) has confirmed that it will
strong military is unlikely to fall off the nations priority commission its next generation AFV by 2019 in order
list. to replace the ageing Ultra M113 fleet. The new vehicle
will offer a larger calibre gun and enhanced firepower
A programme of mass-production of indigenous and protection. Development of the new vehicle
armoured vehicles began in June 2016 under the began in 2006 through collaboration of the SAF, the
oversight of the ROKs Defence Acquisition Programme Defence Science Technology Agency, and Singapore
Administration (DAPA), aiming at improving mobility Technologies (ST) Kinetics (the land systems division of
and operability of infantry troops. 100 6x6 KW1 (K806) state-affiliated defence prime ST Engineering).
and 500 8x8 (K808) wheeled armoured vehicles are
to be produced by 2023. This renews the initiative ST Kinetics is hoping to expand exports of its Terrex
first launched in December 2012, with work being 8x8 IFV family, which now includes three distinct
undertaken by Hyundai Rotem. 16 low-rate initial platforms with gross vehicle weight ratings ranging
production vehicles are to be delivered to the Republic from 24-35 tonnes. The company has indicated that
of Korea Army (RoKA) for field trials scheduled to last till interest has been shown from countries in the Middle
the end of 2017. Production will commence thereafter East, North America (specifically, the US Marine Corps
from 2018. Amphibious Combat Vehicle Phase 1 Increment 1
programme), Latin America, and by those involved
in the Australian Army Project Land 400 Phase 2.
Design and engineering capabilities are said to
support in-country manufacturing to help manage
cost and risk for the customer. ST aims to build on its
foreign experience in providing technical advice and
consultancy services to Thailands Defence Technical
Institutes (DTIs) indigenous 24-tonne 8x8 Black Widow
Spider armoured vehicle development for the Royal
Thai Army (RTA).
Indias armed forces are to benefit from a new wave of
equipment upgrades in its defence spending boost.
Meanwhile, STs 4x4 Protected Combat Support Vehicle
Image: Wikimedia
(PCSV) scheduled to be commissioned by 2017 is
also set to provide the SAFs motorised infantry with
While the 16-tonne K806 and 20-tonne K808 share improved firepower and protection. The 20-tonne
similar features such as a 420 hp Hyundai Motor platform is based on the Paramount Marauder MRAP
Company diesel engine and a two-person crew with from South Africa, is operated by a crew of two seated
space for up to nine fully equipped troops the K806 in a protected cabin, and offers a payload capacity
is conceived as an escort-type protective vehicle for of 4,000 kg or up to eight dismounts. The modular
convoys and facilities or reconnaissance while the K808 design of the rear compartment enables the vehicle
is designed to integrate with other combat vehicles for to be configured for a range of missions, with mortar,
high-intensity operations over difficult terrain. DAPA battlefield casualty evacuation, and resupply variants
believes the new wheeled armoured vehicles, equipped being planned. The PCSV will replace the soft-skin
with cutting-edge technologies, can move swiftly on the MAN military utility trucks currently involved in logistics
ground as well as cross water obstacles, carry heavy operations. When equipped with the SAFs Army
firepower and protect the troops inside from enemy Battlefield Internet (ABI) network, the vehicle will be
machine gun attacks that will enormously increase able to integrate with the Terrex IFV.
infantry units operability. The vehicles will also compete
on the export market if they prove to offer a cost-
advantageous option over alternatives.

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Malaysia responded to worries over its economy by localisation of production of the vehicles in Thailand
trimming the 2016 defence budget by 2.25 percent and was said to be a blow to Russias Rosoboronexport
to $4bn. The figures are poignant when considering which was expecting to clinch a similar deal for its BMP-
the 10 percent hike seen between 2014-15. The 3 AFVs.
timing is difficult for the government as security crises
have been plentiful in recent years, including Chinese Within the same period, Thai Defence Technology
incursions into Malaysian waters, a 2013 invasion of Institute (DTI) introduced the first Black Widow Spider
Filipino insurgents, and the 2014 disappearance of 8x8 amphibious armoured car. The vehicle was jointly
Malaysian Airlines flight MH 370, which many have developed by DTI researchers, the National Metal and
attributed to terrorism. Materials Technology Centre and private organisations
with expertise in automotive safety. The Spider is
Even under these cuts, the country is seeking to resistant to small arms fire and .57 calibre machine
upgrade its AFVs to extend their operational life, while gun fire, while being capable of transporting 12 people
augmenting its fleet with the delivery of 257 AV8 8x8 and equipped with its own 30mm machine gun. Also
vehicles from Malaysian company DefTech. The first notable is that Bangkok-based Chaiseri, a defence land
of these AFVs have been delivered from the FNSS systems specialist with almost 50 years of experience
production line in Turkey. Plans to upgrade to the in customising and repairing military vehicles, has
existing inventory include the Alvis Vehicles Scorpion developed its own APC. Named First Win, the vehicle
90 light AFVs and Rheinmetall MAN Military Vehicles has been designed specifically to offer high protection
Condor 4x4 APCs. against IED blasts. The Royal Thai Army made an initial
order of 21 units in 2012, then 50 more in 2013.
Currently, at least 18 per year are set to be delivered to
the RTA on a contract that could extend to 200 units.
Taiwan is projecting a defence expenditure increase to

$10.2bn for 2017, accounting for 0.5 per cent increase
over actual expenditure in 2016. Earlier in the year, the
US DoD requested Taiwan increase budget and invest
in asymmetric and innovative capabilities due to the
huge imbalance of size, power and military budgets
between Taiwan and China. The country is remaining
active on the international scene, having taken part in
a US military training exercise in Hawaii in June 2016
that featured one of its mechanized infantry platoons
observing operation and deployment of eight-wheeled
armoured combat vehicles on terrain similar to its own.
Not all has been positive for Taiwan. The tail end
of 2015 saw a number of Taiwanese officials and
The Thai Defence Technology Institute (DTI) recently introduced contractors charged over a procurement scandal
the first Black Widow Spider 8x8 amphibious armoured car. involving locally produced 8x8 CM-32 Yunpao (Clouded
Leopard) APCs, which saw a $243.9m manufacturing
contract awarded to Chung Hsin Electric and Machinery
Thailand is targeting a small increase in the defence Manufacturing Corp. (CHEM) only for a number of
budget for 2017 of 3 per cent at around $6bn (1.5 per alleged irregularities. Those indicted were accused
cent of GDP). This marks a deceleration in comparison of using Chinese-made spare parts and not holding
to annual expenditure in the last three years, based proper certifications to fulfil the contract, resulting in a
seemingly on a slowing economy. The past year significant number of vehicle breakdowns. However,
has seen interesting developments for Thailand the CM-32s will continue to provide coverage to the
in international cooperation as well as domestic Army, with Taiwan allocating $175m for new research
vehicle development. Ukraine and Thailand signed and development into home-grown weapon systems,
an agreement at the end of 2015 on joint production including those that can be integrated into these
of BTR-3 AFVs. The agreement provided for the vehicles.

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In terms of procurement, Indonesia took delivery in
September 2016 of the first 24 of 61 Leopard 2 RI
MBTs ordered from Rheinmetall Defence in 2012.
The remainder is scheduled to be delivered by March
2017. These tanks form part of a $280m contract
that comprises the Leopard 2 RIs, plus 42 Leopard
2+ MBTs (standard Leopard 2 A4s configured with a
bustle-mounted air conditioning system), 42 upgraded
Marder 1A3 IFVs, and 11 armoured recovery and
engineering vehicles offloaded as surplus by the
German Army. Indonesia also completed delivery of a
fleet of customized Black Fox 6x6 vehicles from South
Taiwans CM-32 Yunpao (Clouded Leopard) armoured vehicle Koreas Hanwha Defense Systems in 2013, which were
in mobile gun configuration with a 105 mm gun. lightened to suit the local terrain and augmented with
amphibious capabilities and weapons systems, and
Indonesia announced an increase to its defence had Pindad undertake the work on final assembly and
budget in 2016, raising the funds by 9.2 percent to systems integration.
a total of $8.28 billion. The injection has been made
possible by the governments decision to scrap The Philippines is proposing a 14 percent increase
fuel subsidies and new procurements are on the in defence spending in 2017 to boost its fight against
agenda. Beijings unilaterally claimed nine-dash line Islamist militants and enhance maritime security in the
demarcation intersects with Indonesias exclusive disputed South China Sea. This equates to $2.8 billion
economic zone near the Natuna islands and this has going to the armed forces. The countrys state-owned
caused friction to what are otherwise positive relations. defence organisation, The Government Arsenal, has
also outlined plans in 2016 to establish a dedicated
The country has expanded its defence industrial defence industrial zone to support the development of
base rapidly in recent years and is looking to further related capabilities in the country.
increase its number of export customers. One of the
most prominent on paper is Pakistan, with a bilateral Recent and controversial comments by President
offer made in 2016 to formally seek sales of Indonesian Rodrigo Duterte have indicated a desire to distance
equipment, including the Anoa 6x6 manufactured by the country from its long-standing military and
one of Indonesias main defence companies, state- diplomatic ties with the United States, with threats to
owned PT Pindad. To date, the company has produced seek business instead with Russia or China. It remains
large numbers of the Anoa- 2 6x6 APC for Indonesian to be seen whether this will affect bilateral defence
forces. In Pakistan, the vehicle would find itself in direct trade and collaboration in the Asia-Pacific region. Such
competition with the Dragoon 44 APC, produced a break would mark a significant contrast to recent
under license by Pakistans own Heavy Industries Taxila cooperation, with the Philippines under former
(HIT). President Benigno Aquino receiving a donation of 114
M113A2 APCS from the United States towards the end
Pindad is said to be diversifying its range of AFVs. Its of 2015.
latest vehicle is the Badak 6x6 direct fire vehicle (DFV),
which offers a different layout and is fitted with a CMI Bruneis defence budget was announced to be
Defence two-person turret with a 90mm gun and a growing by almost 5 percent in 2016-17, totalling
7.62mm coaxial machine gun, plus a similar weapon $408m (approximately 2.5 percent of GDP). The hike
being mounted on the roof. In January 2016, the is not modest when considering that it comes at a
company received an order to supply the Indonesian time when the overall national budget has been cut by
Army with an initial 50 units, approximated at $36m, to $800m. However, last year saw the Royal Brunei Armed
be delivered by the end of the year. Pindads Komodo Forces (RBAF) lose 25 percent of its funding amid
4x4 meanwhile provides a potential reconnaissance an austerity restructure brought on by collapsing oil
platform that accommodates a crew of four, or a prices. It is believed that up to $94 million will be spent
protected troop carrier variant with a crew of two and on the procurement of new equipment.
up to 10 dismounts.

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Australias 2016 Defence Budget provides the funding given bidders the flexibility to include options such as
needed to deliver the capability plans set out in the manned or unmanned turrets and protection systems
countrys 2016 Defence White Paper by growing the to meet the combination of survivability, mobility, and
budget to two percent of GDP by 2020-21, three firepower required for the CRV. Successful bidders
years earlier than the Governments 2013 election will recommend subsystems for their vehicles,
commitment. This will result in additional funding of but the Defence Department has the option of
US $22.63bn over the next decade. $24.44bn will be selecting alternative ones. This includes a contract
provided in fiscal year 2016-17 and $108.14bn over the for active protection systems (APS) and missiles, with
Forward Estimates. international bids, such as Israels Rafael Trophy APS
among the contenders.
The Australian Armys $14bn Project Land 400 re-
equipment programme is the largest in its history. It The New Zealand government has also upped its
will replace ageing and under-protected vehicles with budget. The 2016/17 budget sat at $2.5bn for the New
modern IFVs, Combat Reconnaissance Vehicles (CRVs), Zealand Defence Force (NZDF) including $543m the
Manoeuvre Support Vehicles (MSVs) and an Integrated Army representing an 8.8 percent increase over the
Training System (ITS). The countrys fleet of soft-skin previous year. Officials have said the budget is set to
Land Rovers will be replaced with Thales Hawkei remain at around 1.1 percent of GDP for the coming
4x4 protected mobility vehicles (PMVs). Under the years. The country also announced in its June 2016
current phase (Phase 2) of this programme, 225 8x8 Defence White Paper that it will spend $20bn on the
mine-protected reconnaissance vehicles will replace NZDF in a 15-year investment plan. While there is no
Australias 250 ASLAV light armoured vehicles by 2020. specific breakdown of where costs will be funnelled, the
Two contenders remaining in the competition at time plan is to assess whether existing LAVs will need to be
of writing the AMV35 Combat Reconnaissance Vehicle replaced or simply modernised. The government has
by BAE Systems Australia (teaming with Finlands and said that this investment policy is being launched at
Saab Australia); and the Boxer Combat Reconnaissance a time of increasing uncertainty and instability in the
Vehicle from Rheinmetall Defence (teaming with international environment.
Supacat Australia and the Netherlands government).
As of August 2016, a years worth of rigorous testing
and evaluation on both platforms is underway. In
tandem effort, an IFV will replace Australias M113AS4
from 2025. The M113AS4 LOT is expected to last
as long as 2030 but its fit for purpose suitability is
decaying given current and emerging threats. It is not
expected to be deployable for anything other than low
intensity/low risk missions beyond 2025. The Army has

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ASIA-PACIFIC
this year include:
Brigadier General Chris Mills

Director General, Army Modernization
Australian Army
Dr. Dong Hyun Kim

Director for Mobility & Automotive R&D
Agency for Defense Development (RoK)
Dr. Yazid Ahmad, Ph.D

Director Mechanical & Aerospace Technology Division (STRIDE)
Malaysian MoD

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NORTH AMERICA
Overall, North America is a politically and transforming, cooperation will become essential to
economically stable region. Domestically, the United ward off risks to security in this region.
States has experienced heated civil rights protests in
the past year centring on issues of race and police Following the decision to downsize its Army (from
interaction, but despite the sudden frequency of 490,000 active duty personnel to 450,000), the demand
this unrest, it is highly unlikely that the military will from the United States for armoured vehicles is
be deployed within the country to respond to these likely to decrease. The creation of the Excess Defence
matters. The military however remains able to respond Articles (EDA) programme aims to redistribute military
to environmental disasters, incidents of which can be assets that are no longer needed to partners and allies
severe from hurricanes around the Gulf of Mexico to struggling to fulfil their own urgent requirements. In
earthquakes around the Pacific coast. It goes without January 2016, for example, 24 MRAPs (valued at $11m)
saying that the US retains a large military presence were donated to Nigeria to support its campaign
outside the country in spite of defence cutbacks in against Boko Haram.
2016. Today, its military personnel are deployed in
more than 74 countries and are actively involved in Foreign sales of US-made vehicles also remain
the conflicts in Iraq, Syria, Libya and Yemen, as well comparatively strong. In August 2016, the State
as offering training and support in Cameroon, Burma, Department approved the potential sale of more than
the Baltics and many other areas. This international 130 Abrams MBTs, 20 armoured recovery vehicles
involvement cannot come without a build-up of anxiety and other equipment to the Royal Saudi Land Forces
among other major powers, and as such, the nation (RSLF), worth around $1.15bn. This coincided with the
holds fragile diplomatic relations with the likes of Saudi-led military action in support of Yemeni forces
Russia, Iran and China. against Iran-allied Houthi forces. General Dynamics is
the principal contractor for this sale.
Canada is not involved in any major conflict at present
and is not facing a serious level of domestic threat
beyond the occasional Islamist terrorist incidents
to which all Western nations are currently subject.
However, according to NATO figures, Canada will set
aside $20.3bn for defence in its latest budget, an
increase from $19.4bn in 2015. The newly-elected
Liberal government is mulling peacekeeping operations
in Mali, while also providing hundreds of troops to a
NATO high-readiness brigade in Latvia as part of the
multinational deterrent force formed in the wake of
recent Russian expansionism.
Meanwhile, the Arctic is emerging as a distinct sub-

region in an increasingly globalised world. The heavy Oshkosh Defenses Light Combat Tactical All-Terrain Vehicle
presence of natural resources and the emergence (L-ATV) prototype which ended the US Armys nearly decade-long
of new trade routes has led the Artic to become part search for a new armoured truck. Image: US Army
of a complex framework of political and economic
dynamics. At the heart of this are multilateral claims on
territorial sovereignty, largely related to the economic
benefits attached to these disputed areas. For now,
ownership of Arctic resources has been discussed
on peaceful terms but with climate and topography

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As for its own military vehicles programmes, the July 2016 saw Battelle awarded a five-year, $170m
Armys nearly decade-long search for a new armoured contract to build and deliver non standard commercial
truck ended in August 2015, with the selection of the vehicles (NSCVs) for US Special Operations Command
Oshkosh Corporations Light Combat Tactical All-Terrain (USSOCOM). The contract will see Battelle build re-
Vehicle (L-ATV). The initial contract for the Joint Light engineered armoured and unarmoured vehicles
Tactical Vehicle (JLTV) programme is worth $6.7bn, and that keep the appearance of original equipment
calls for low-rate production of 16,901 L-ATVs for the manufacturer for the Hilux, Land Cruiser and Ford
Army and Marines over the next three years. Following platforms, such as providing them stronger alternators
this, there will be an option for the armed forces to to handle extreme climates, as well as improved crew
purchase additional units at full-rate production, with protection, enhanced suspension, and a reinforced
expected totals of 49,100 for the Army and 5,500 for chassis. This new contract which includes an option
the Marines in operation by 2040. The contract is for two additional years builds on the successful
expected to be worth over $30bn in total. The company completion of a previous NSCV contract awarded to the
received its latest order of a $42m batch in September company in 2013.
2016, following a $243m order in March. Each batch
The Army disclosed

includes vehicles, installed kits and related support.
The JLTV programme was first approved in 2006, as the

High Mobility Multipurpose Wheeled Vehicle (HMMWV) that the JLTV is also to
or Humvee was found lacking in its ability to withstand
IED attacks. Rather than deal with the costs and time
constraints involved in upgrading the armour of tens
be used as the platform
of thousands of Humvees, a new vehicle was sought.
Three bidders were selected in August 2012 for JLTVs
for the upcoming Light
Engineering, Manufacturing and Development (EMD)
phase. These were AM General with its Blast- Resistant
Reconnaissance Vehicle
Vehicle - Off Road (BRV-O), Lockheed Martins JLTV,
and Oshkoshs L-ATV, with all three being required to
(LRV) programme
produce 22 prototype vehicles over the following 27
months. Each L-ATV is costed at $433,539, to be sold at The US is also thinking to the future. It was announced
around $559,000 per unit. The vehicle weighs 6,400kg, in July that UK-based Qinetiq has been awarded
is fitted with a GM Duramax V8 6.6-litre engine, and has a $2.7m grant to help develop the countrys next
a top road speed of around 112kmph. It also utilises generation of AFVs under the US Defense Advanced
a power-assisted, front wheel steering system and Research Projects Agency (DARPA) Ground X-Vehicle
allison automatic transmission, and can be fitted with a Technologies (GXV-T) programme. The organization
selection of light and medium weapons, including anti- is leveraging its hub-drive technology which replaces
tank and automatic grenade weaponry. multiple gearboxes, differentials, and drive shafts with
compact, high-powered electric motors contained
In May 2016, the Army disclosed that the JLTV is also within the wheels themselves. The approach is said to
to be used as the platform for the upcoming Light reduce the overall weight of the vehicle, improve safety
Reconnaissance Vehicle (LRV) programme rather and increase performance. As a scalable solution, this
than the procurement of a new system. The LRV could alleviate some of the burden brought on by the
is to be an off-road platform for carrying a suite of need for heavier armour. The contract will take the
intelligence, surveillance, and reconnaissance sensors; technology from concept to the build and test phase.
it is be light enough to be carried by a CH-47 Chinook
helicopter. The JLTV has been described as an interim
LRV solution, and there is a possibility that evaluation
of JLTV in the LRV role will determine if a change is
necessary.

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Despite the governments commitment to introduce response times across a spectrum of operations.
more rigorous control in arms exports, Canadas These vehicles were outlined as needing to transport
position as a manufacturer is strengthening and four passengers, small and light enough to fit inside
is now the second biggest exporter of armoured the CC-177 Globemaster aircraft and CC-130 Hercules
vehicles in the Middle East. Overall there is the trend aircraft or in (or able to be lifted by) a CH-147 Chinook.
for this region to become a less appealing market as They would also need to be air dropped with a 900 kg
government policies are affecting the defence budget payload from either the Globemaster or the Hercules,
but it remains the fulcra of manufacturing. and detached/offloaded from the helicopter within
five minutes. The tender stipulated a requirement
The past year has in fact placed some difficult that the vehicle operate in extreme temperatures
pressures on Canadas export market. Shipments made (-32C to +49C), handle a combination of urban and
to Libya and South Sudan by Streit Group described rural environments (mountainous, plains, jungle and
as one of the worlds largest armoured vehicles woodland) and will be off-road 75 per cent of the
manufacturers has caused a diplomatic storm in time. The DND will have the option of adding 26 more
Ottawa over whether the company (and therefore vehicles to the contract within two years.
the Canadian Government) has violated embargos.
There remains a debate over whether the company, In the same month, the Canadian Armys 5th Canadian
which established its largest production facility in Ras Division (5CdnDiv) took delivery of an initial six TAPV/
Al Khaimah, UAE, and has offices worldwide, can be VPBT (Tactical Armored Patrol Vehicle/Vhicule
considered technically Canadian or whether its deals Blind Tactique de Patrouille) 44 mine protected
should be considered those of an entity of the United high-mobility multipurpose vehicles from Textron
Arab Emirates. Nevertheless, officials within Canada Systems Canada. The fleet will be used to train
and the UN Security Council are currently investigating operators and maintainers. In 2012, Canadas Public
the matter while the Liberal government deals with Works and Government Services Canada (PWGSC)
tough questions regarding its oversight of defence awarded a CAD603.4 million contract to the Textron
industry activity. At least 79 Typhoon and Spartan APCs Systems Canada to manufacture 500 TAPV vehicles,
were shipped to Libya and 173 Typhoon and Cougar including an option for an additional 100 vehicles. The
APCs to South Sudan in 2014. purchase included 300 general utility variants and
200 reconnaissance variants to replace the Coyote
8x8 vehicle and RG-31 Mk3 Nyala 4x4 vehicle. The
contractor also received an additional CAD105.4
million contract for five-year in-service support. The
fleet is to be distributed across the 2nd, 3th, 4th and
5th Canadian Divisions, Army Equipment Fielding
Centre, and Royal Canadian Electrical and Mechanical
Engineers School. The TAPV, meanwhile, is based on
Textrons COMMANDO Elite design. The first vehicle
was originally scheduled to be delivered to the
Canadian Army in July 2014 and the last delivery for
March 2016. However, in 2014, pre-production vehicles
experienced a number of technical issues. Design
changes and modifications to address the problems
The TAPV/VPBT (Tactical Armored Patrol Vehicle/Vhicule were subsequently fixed. The last delivery is now
Blind Tactique de Patrouille) 44 mine protected high-mobility scheduled for late 2017.
multipurpose vehicles from Textron Systems Canada of which
the Canadian Armys 5th Canadian Division (5CdnDiv) took Armoured vehicles are also being sought by local
delivery this year. Image: Canadian Army authorities in small measure. Police in Calgary
announced in August 2016 that they are looking to
In less controversial developments, August 2016 purchase a new armoured rescue vehicle at a cost
saw Canada issue a call for tender for 52 Ultra Light of roughly $300,000 as a critical and irreplaceable
Combat Vehicles (ULCVs), mirroring the United States asset. The existing vehicle has been used extensively
efforts for similar weight armour and intended as over the past ten years, responding to high risk call
a complimentary vehicle to increase mobility and outs, barricade efforts and warrant services.

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NORTH AMERICA
this year include:
General Robert B. Neller

Commandant of the Marine Corps
U.S. Marine Corps
General Robert Abrams

Commanding General
U.S. Army Forces Command
General David G. Perkins

Commanding General
U.S. Army Training and Doctrine
Brigadier-General D.A. Macaulay

Chief of Staff Army Strategy
Canadian Army

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LATIN AMERICA
Although Latin America and the Caribbean only groups involved in more than 50 years of internal
has some 8,651 light armoured vehicles (5.8 per conflict. However, there is concern that a referendum
cent), several vehicles are successfully produced in could reject the terms, thereby risking a return to
the region, with procurement programmes in Brazil, conflict.
Argentina, Jamaica, Paraguay (planned), Peru and
Venezuela. While domestic security issues do not require a heavy
deployment of armoured vehicles, most Latin American
Despite the increased military spending of many Latin countries are engaged in overseas peacekeeping
America countries in the past five years and the high operations and, as trends show, due to both a strategic
numbers of intergovernmental arrangements aimed at and a political rationale, their military contribution will
improving regional security, internal security remains continue to increase.
highly unstable. While no intra-state conflict is likely to
take place, the rise of paramilitary groups and gang- At the same time, the SIPRI Military Expenditure
related violence leading to a human security situation Database indicates that military expenditure in Latin
that is fast becoming Latin Americas most pressing America and the Caribbean decreased by 2.9 per cent
issue. According to the United Nations Office on Drugs in 2015, largely owing to the huge fall in spending in
and Crime (UNODC), 36 percent of all homicides Venezuela and Brazils expenditure receding slightly
globally take place in the Americas. This is reflected in as a result of its economic crisis. Spending continued
the Gallups Law and Order Index which ranks Latin to increase in Central America due to the growing
America as the least safe region with only 14 percent militarisation of the anti-drug war.
of Venezuelans feeling safe when walking alone where
they live. This represents an even more dangerous Where the Latin American armoured vehicles market is
environment than war-torn Syria and Afghanistan. concerned, demand for Light Armoured Vehicles, APCs
and MRAPs, has been relatively strong in the face of
shrinking expenditure. The rise of guerrilla warfare and
asymmetric conflict results in national governments
increasing their military presence in the territory and
consequently demanding more LAVs to support their
operations, but with enhanced survivability.
This trend may be reflected in the future military

spending of countries such as Venezuela, which
heavily cut its defence budget in the last three years
but has recently experienced a dramatic worsening
of its security situation. Currently, a severe economic
slump brought on by the drop in oil prices and other
factors has led to a severe shortage of food and
A Norinco VN-4 4x4 in Caracas, Venezuela.
basic goods. The military is being tasked with trying
Image: Cancillera del Ecuador
to deliver supplies to the public while also supressing
demonstrations calling for President Nicols Maduro
Moreover, recent violent suppression of protesters by to step down and the opposition party to take control.
Venezuelas President Nicolas Maduro in addition Meanwhile, the borders with Colombia remained
to the illegal gang led mining issue could lead to the closed for much of 2016. Between 2011 and 2015,
outbreak of low intensity conflicts in the country. At Venezuela was the eighteenth largest importer of
time of writing, Colombias government is on the cusp military equipment in the world (most imported from
of sealing a peace deal with the FARC (Revolutionary Russia) but no new orders were placed in 2015 and the
Armed Forces of Colombia) one of the major armed cuts will continue to be deep.

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In October 2015, the Venezuelan Marine Corps 2016 saw several areas of progress for Brazilian
became the first export customer for VN-16 and VN-18 armoured vehicles, beginning with the Army starting
tracked armoured amphibious assault vehicles from its upgrade of a second batch (236) of BAE Systems
China North Industries (Norinco). These designations M113B tracked APCs to M113A2 Mk1 standard
translate to a 105 mm gun-armed ZTL-05 amphibious (designated as M113BR in the Brazilian Army), due to
assault vehicle and the 26-tonne 30 mm gun-armed be completed in November 2019. The first batch of 150
ZBD-05 amphibious IFV. The latter is armed with a identical vehicles was locally upgraded by the armys
HJ-7D anti-tank missile, and carries a crew of three and 5th Military Regions Regional Maintenance Park (Pq
up to eight troops. Both vehicles can traverse water at R Mnt/5) in Curitiba, State of Paran. The last vehicle
25 km/h. The Chinese PLA has been operating these was delivered in December 2015. The Army is also
vehicles since 2006. receiving 34 surplus M577A2 command post vehicles,
12 M113A2 APCs, and four M88A1 recovery vehicles
from the U.S. through the Excess Defense Articles (EDA)
programme.
In spite of what will be

a temporary decrease,
Brazil plans to continue
The Brazilian Armys VBTP-MR 6x6 Guarani amphibious medium
investment into new
APC will be enter service through to 2030.
Image: Andre Gustavo Stumpf Filho
military technology
The delivery followed that of an earlier consignment
of 557-unit military vehicles from China, including
VN-4 4x4 wheeled armoured vehicles, ABV-1 assault Since 2012, the country has been producing and
breacher vehicles and WTC-1 water cannon vehicles, delivering the Armys VBTP-MR 6x6 Guarani amphibious
alongside 200 Norinco NG2629 6x6 vehicles. Plans to medium APC, a component of the wider military
purchase a total of 2,106 military vehicles for ground modernisation programme and a replacement of the
forces between 2009 and 2019 are likely to have been ageing Urutu Cascavel fleet. Overall, 2,044 units have
scrapped. been signed off and are due to enter service until
2030. As a requirement, at least 60 percent of the
Following several years of expansion and investment vehicle components are originating from local industry.
into vast modernisation programmes, Brazil began to The Army also wants to procure additional REMAX
reduce its defence expenditure in 2015, cutting annual (REparo de Metralhadora Automatizado X) and UT30BR
investment by a quarter. The drop was a direct result lightweight remote-controlled weapon stations.
of the nations sudden fiscal crisis, itself exasperated
by political instability. Brazils 2016 expenditure was The Brazilian Navy meanwhile is considering upgrades
placed at $19.3bn, and analysts estimate this should for its SK-105A2S Krassier light tanks, and to purchase
rise to $20.5bn by 2021 at a CAGR of 4.08 percent. In 4x4 and 6x6 armoured vehicles for its Marine Corps
spite of what will be a temporary decrease, Brazil plans (CFN). As of July 2016, concept and budget feasibility
to continue investment into new military technology to are being analysed. The projects would integrate the
strengthen its domestic defence industry as much as Navys multi-phase Strategic Project for Consolidation
its armed forces. Of course, Brazils security focus in of the Marines Amphibious Brigade Program
recent years has been on ensuring a strong presence (PROBANF), designed to enhance firepower, mobility,
hosting world stage events the 2014 FIFA World Cup and protection capabilities.
and the 2016 Summer Olympic Games which saw
a series of demonstrations on the streets of Rio de
Janeiro.
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Colombias annual military expenditure increased has troubled the country, undermining the source of
in 2016 by around eight percent, reaching $8.1bn. one-third of the governments income.
Further growth is anticipated through to 2020, where it
should begin to push the $10bn ceiling. U.S. lawmakers
approved $296m (a slight decrease on 2015) in aid to
Colombia in 2016 to continue its efforts to reinstate
authority and security.
As mentioned, a peace deal is tantalizingly close

with the FARC, but a failure to close the deal could
mean years of renegotiations and a risk of unrest.
The five-decade old conflict is thought to have killed
more than 220,000 people. Colombia is also still
combating the smaller insurgency group of the ELN
(National Liberation Army), which operates mainly
in the north-east and is estimated to have dissolved
to around two thousand members. The government Presentation of the 21st Military Police (MP) battalion at Gua-
began formal talks for peace agreements with the ELN chochi, Chihuahua as part of the Mexican Armys expansion of
in March 2016. Aside to these rebel groups, criminal its Military Police Corps. Image: SEDENA
organisations remain a serious problem for national
security. Although Colombian coca production has On the positive side, a defence spending spree in the
been significantly reduced, the FARC-controlled drug preceding years as part of the countrys National
trade which has been used to fund the insurgency Defence Sector Programme to strengthen all defence
is at risk of being seized by traffickers, while ex- institutions with territorial responsibility against
FARC fighters may be persuaded to transition into organised and transnational crime saw the budget
cartels. At the same time, Colombias relationship with increase at a CAGR of 5.8 percent between 2011-
neighbouring Venezuela has been increasingly strained 2015 and allowed Mexico to stockpile a range of
owing to issues of border disputes and the infiltration new hardware as well as mandate new procurement
of rebels across these borders. programmes.
These tensions are equally driving defence spending The Ministry of National Defence (SEDENA) launched
decisions, including investment into MBTs, IFVs and a procurement programme in 2015 for 105 new
APCs. In recent activity U.S.-based Textron Systems armoured vehicles as well as a programme to upgrade
was awarded a $65m contract in 2016 to provide 54 its existing 119 6x6 Panhard Defense ERC 90 Lynx
Commando Select APCs with 40mm/.50 turrets as a armoured reconnaissance vehicles. The investment
foreign military sales contract to Colombia. Funds for would see the new vehicles bring four of its nine
the four-wheel APC will come out of the U.S. Armys Armoured Reconnaissance Regiments (RBRs) to full
other procurement pool. The contract follows a 2014 spec. Mexico has purchased 3,335 HMMWV (Humvees)
delivery of 67 4x4 Textron Commando Advanced APC from ex-U.S. military stocks for $504m. The country
high mobility vehicles 39 of which were ordered has $499m earmarked for APCs and amphibious APCs,
without turrets and another 28 ordered with 40/50 forecast at approximately $200m per programme.
calibre remote turrets at around $1.13m each.
More recently, SEDENCA activated the 21st Military
No stranger to drug trafficking organisations Police (MP) battalion at Guachochi, Chihuahua, as part
themselves, Mexico remains in a fragile state when of the Mexican Armys expansion of its Military Police
it comes to national security. However, the budget Corps. The newly operational 4th Military Police Brigade
allocations for defence and security are complex. is expected to eventually comprise 3,000 soldiers and
According to Forecast International, When measured conducts patrols in a number of vehicles including the
in dollars, defence spending [in Mexico] declined in Oshkosh Sandcat.
FY16. However, this is largely due to the rising value
of the dollar compared to the peso. In terms of pesos,
the FY16 Mexican budget [increased to] 1.4 percent to
MXN99,651.9 million. Even so, the decline in oil prices

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A September 2016 Independence Day military parade
saw Mexicos Army unveil several new armoured Towards the beginning of 2015, Peru was reported as
vehicles. The Mexican Marines, for example, displayed looking to acquire 106 AFVs and 105 MBTs as part of
a Mack Defense Sherpa Scout armoured patrol its Army Harpay Nina (Firepower) programme. The
vehicle. Also shown were newly acquired Kitam 4x4 project is part of the armys Ugarte modernisation
LAVs (currently approaching series production), and a plan. It is also known to be prioritising a new fleet
prototype of the Cimarron APC, a design based on a of IFVs, but is undecided on a tracked or wheeled
Mercedes Unimog U5000 chassis that features a fully platform. Possibilities include the LAV III, YPR-765A1,
armoured cab and troop compartment.
Growth is also being driven in Mexicos commercial

armoured car industry by continued high levels of
Peru is understood
violent crime. New domestic and foreign competitors
have entered this market, establishing assembly
to be the customer
plants in Mexico and appealing most to government
authorities and business owners. The rate of increase of 338 Rheinmetall
in privately-owned armoured vehicles is in fact higher
in other parts of Latin America than in Mexico but a MAN Military Vehicles
(RMMV) in a $60m
sense of insecurity continues to pervade as cartels and
other crime groups spread out. The criminal threat
is of serious concern to Mexicos economic future.
According to recent studies, as much as 3 percent of
Mexicos GDP is lost to crime and violence each year,
contract.
with most occurring from direct losses and a third
spent on security and prevention. Also of concern is the
extent to which criminal organisations are upscaling Marder 1, BTR-80, BMP-1/2, Pandur, M113, BMR-600,
their own armour and equipment, including the recent BTR-80A and BMP-3.
emergence of so-called narco tanks intended to May 2015 saw General Dynamics Land Systems
combat both police, military and rival gangs on the Canada unveil the first pair of LAV-II Cayman 8x8
streets. armoured vehicles of a 32-strong fleet ordered by the
Peruvian Armed Forces in the range of $55m-$67m
In July 2016, Bolivia took ownership of a fleet of 31 and intended to be used to patrol the coast, lakes and
China Tiger 4x4 light armoured vehicles and four riot rivers. These vehicles have been designed to Peruvian
response vehicles from China worth $7.7 million as part specifications lightweight, amphibious, manoeuvrable
of a military cooperation deal (including training and over difficult terrain, and low-maintenance. GDLS is
maintenance instruction). Of this order, five APCs and also providing the logistics support package.
one crowd-control/command car will be given to the air
force and another six vehicles of similar configuration Peru is also understood to be the customer of 338
will be provided to the navy, while the army will receive Rheinmetall MAN Military Vehicles (RMMV) in a $60m
the remainder. The Tiger, built by Shaanxi Baoji Special contract. RMMV will begin supplying the Navy with 30
Vehicles Company, offers high-mobility and all-weather TGS-MIL, and the Army with 92 TGS-MIL and 216 TGM
capabilities, carrying up to nine fully equipped troops MIL trucks from early 2017. The contract includes an
and a crew of two. China is also said to be donating an option for 337 further vehicles.
additional $30m in military aid to the Bolivian Armed
Forces. In August 2016, a package of reforms was outlined
by the government to combat crime and corruption.
The Bolivian Army currently stocks 36 SK-105 Kurassier Among the measures are plans for widespread police
light tanks and 24 EE-9 Cascavel reconnaissance stings and $300m of upgrades to police equipment
vehicles, along with APC fleets including M113s, EE-11 over the next five years.
Urutus, M9 Half-tracks, V-150s and Mowag Rolands
(used by police).

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While Chile is a relatively safer country compared to Marder and YPR-765 AIFVs, M-113 A1/A2 and Piranha
the rest of the region, there remains an ongoing, APCs, as well as a Marine force adopting new Scorpion
small-scale domestic terrorism risk, with political light tanks and MOWAG Rowland 4x4s.
activists/anarchists emplacing over 200 IEDs since
2005. Large-scale demonstrations (including some that The military of Argentina is currently in a severely
turned violent) also occurred in 2015 predominantly weakened state owing largely to the precarious state
in Santiago, Valparaiso and Concepcion where tens of of the countrys economy, which in 2014 defaulted on
thousands of students, teachers, and citizens marched its debt for the eighth time. Defence spending had
for educational reforms. For several years, the country been increasing at an annual rate of 27.6 percent
has been investing heavily into its Northern Border between 2012 and 2016, but due to high inflation,
Plan by increasing the presence of police and armed when converted to dollars, this translates to just a 1.5
forces and allowing the Chilean military to provide percent increase. Now, defence spending is set to slow
limited support functions to local authorities without further.
infringing on laws preventing armed forces from being
used in an internal security role. While every service has been significantly maimed
by these monetary woes (and by the involvement of
In recent developments, relations with Bolivia have officers in the recent political scandal), the army has
been sour over joint U.S.-Chile military exercises arguably fared slightly better given its historical benefit
undertaken in August (Combined Joint Southern of receiving almost double the budget of the navy or
Star Exercise), with Bolivian President Evo Morales the air force. It has recently taken delivery of upgraded
publically denouncing the manoeuvres. At the time of Tanque Argentino Mediano (TAM) medium tanks and
these exercises, the Chilean Agency for International refurbished Huey helicopters, apparently to reorient
Development Cooperation had been arranging a itself towards low-intensity peacekeeping operations
programme of collaboration with Bolivia to strengthen rather than conventional combat.
ties. Also in August, the commander of the Peruvian
Army expressed hopes that Peru and Chile could
re-start bilateral military meetings between senior
level officers overseeing border units. Bi-lateral army
visitations have been taking place to bolster this effort.
The Chilean Army has been updating its ageing military

truck fleet under Projecto Alfil (Bishop Project) with
an aim to over 40 percent of the armys current fleet,
now at 25 years old or more. The ideal standard
for a Chilean vehicle age is said to be at an average
maximum of 10 years. Resources to undertake
the overhaul have only became available in 2016.
Mercedes Benz was awarded a contract to provide 330
trucks, includes a batch of MB Zetros 2733 6x6 and
Unimog U 4000 4x4 vehicles. The Zetros are replacing
legacy MB 1017A and the Unimog are to be added to The new prototype of an upgraded TAM 2IP medium tank was
the current stock of the same type. The priority is to shown on the Day of the Argentine Army in the Military School
replace vehicles that are deployed in the countrys less of the Nation. Image: defence.pk
hospitable southern areas where civilian communities
depend on the army during times of severe weather Despite these extreme difficulties, Argentinas military
and emergencies. at least retains a core of well-trained personnel and
an active domestic arms industry producing these
Aside to this, the Army has been primarily exploring aforementioned TAM tanks, alongside aircraft and naval
acquisition in the areas of maintenance and recovery, corvettes. The prototype for the TAM modernisation
spare parts, vision and night fighting technologies and programme which sees partnership with Israel
target acquisition. The development of training centres Military Industries (IMI), Elbit, and Tadiran was
to improve the versatility and professionalism of its unveiled in May 2016.
fleets has also been emphasised. Aside to fleets of
Leopard 2A4s and 1V MBTs, the armed forces boast
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A prototype dubbed TAM 2C emerged in early 2013 service as operational trainers.
and another in 2015 named TAM 2IP, the latter
featuring additional armour. The new design is based Uruguay, per capita, is one of the worlds leading
on IMIs Iron Wall and can be added to any TAM unit contributors to UN peacekeeping forces and invests
without modification. The development includes new in the hardware to support its mission. It operates
protection for the side turrets and chassis. Tests are a range of armoured vehicles, including a fleet of
currently underway on basic performance, protection tanks, and recently introduced the Tigr GAZ-233036
levels, and the impact of the armours weight on the SPM-2 4x4 into the domestic police service, having
vehicle suspension. purchased the fleet from Russia in 2011. A recent
civilian outreach programme (Operation Soldado
The country also finalised an order in June 2015 for Amigo) has seen troops transported by heavy and
110 8x8 VN-1 wheeled amphibious fighting vehicles light vehicles to remote towns in order to help locals
from China North Industries Corporation. Designed with construction and other community-building tasks.
with an operational weight of 21 tons, a single VN-1 Meanwhile, Russian media reported in September 2016
armoured vehicle is capable of carrying 11 soldiers that Moscow has approved a draft of the Russian-
in full equipment and an additional three-man crew. Uruguayan intergovernmental agreement on defence
Argentina secured license to assemble the vehicles at cooperation to strengthen mutual confidence, bolster
its Tandanor-CINAR shipyards. international security, and step up the fight against
terrorism.
Recent senate reforms Ecuador has been looking carefully at provisions for
new roles for its land forces, including peace keeping,
in Paraguay have natural disaster relief and custom vehicles for internal
security. However, unpopular government policies and
been passed to expand

reforms at home were met with demonstrations in
2015, to which security forces responded with military
military powers in the

mobilisation. Meanwhile, the relationship between
Ecuador and the US aside to other Western nations
has become strained in recent years, furthering the
continued fight against prospect that military equipment will be purchased
from rival nations, either regionally or afar. One
guerrilla insurgents example of this is shown in its recent procurement of

Venezuelan Tiuna UR-53AR50 multipurpose military
vehicles.
Recent senate reforms in Paraguay have been passed In 2015, the Army received 709 HOWO-series logistics
to expand military powers in the continued fight against support vehicles from the China National Heavy Duty
guerrilla insurgents of the Paraguayan Peoples Army Truck Import and Export Corporation (CNHTC) through
(EPP) and drug traffickers. While a small force, the EPP a package announced by the Ecuadorian government
have upped their attacks on its targets in recent years, at $81m. Before the acquisition, 70 percent of the
including bombings, arson and assassinations. August countrys land transport fleet was reported to be
2016 saw eight troops killed in an ambush when obsolete and only 51 percent operational.
guerrillas detonated explosives to destroy a military
vehicle.
The Army currently operates a fleet of 6-15 light to

medium tanks, as well contingents of M-9 and EE-11
APCs and upgraded EE-9 Cascavel armoured cars.
Paraguays M3 Stuart light tanks and M4 Sherman
MBTs although acquired from Brazil in 1970 and
from Argentina in 1980, respectively are to remain in

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LATIN AMERICA
this year include:
Lieutenant General Ajax Porto Pinheiro (Brazil)

Force Commander
MINUSTAH
Colonel EP Raul Ramos Peralta

Member of Public Investment Project
Peruvian Army
Commander Pablo von UNGER Thauby

Project Manager for Marine Corps Integrated development,
Programs, Research and Development Directorate
Chilean Navy

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INTERNATIONAL
ARMOURED
VEHICLES IN REVIEW

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Last year at the International Armoured Vehicles forum
Defence IQs International Armoured Vehicles Outside of the conference room, delegates found
(IAVs) 2016 conference (January 2016) delivered an a lively exhibition area where the industrys best
exceptional agenda underpinned by an authoritative and brightest proudly displayed their products
speaker faculty, which included keynote presentations and armoured vehicle systems to international
from the UKs Head of Armoured Vehicle Programmes military delegations where they engaged in valuable
at DE&S Major General Talbot-Rice, the Chief of the conversations about future opportunities. The Vehicle
General Staff for the Afghan National Army, H. E. Zone allowed delegates to get their hands on with
General Qadamshah Shaheem and the Commanding some of the latest platforms and technologies on
General of U.S. Army Materiel Command, General offer, which included vehicles from Textron Systems,
Dennis L. Via. Moreover, the event was sponsored by General Dynamics, Rheinmetall Defence,
our industry partners including Textron Systems, BAE Lockheed Martin, Milspray and Raytheon.
Systems, General Dynamics, ST Kinetics, Nexter,
Saab, Patria and many more besides. Following two days of exclusive insights and robust
dialogue from select military officials and leading
The high-level presentations explored all aspects of armoured vehicle manufacturers during the main
the armoured vehicle operating environment such conference, IAVs 2016 was rounded off with a post-
as future requirements from nations investing in conference workshop day focusing on the cognitive
protected mobility, ideas for how the military and burden and the mounted close combat soldier.
industry can work better together, and alternatives
for more cost effective fleet acquisition in the future. In his summation of the discussions held during the
Under the informed direction of Lieutenant General conference, Lt Gen Coward said that the main points
Sir Gary Coward, the Chairman of the conference, the of debate and agreement centre around modularity,
presentations were also considered within a wider scalability and future proofing. He also said that open
defence industrial context, offering practical solutions systems architecture is beginning to gain real traction
to contemporary challenges faced by government, and will be a key feature of all future armoured vehicle
industry and the military. design.
The four day event kicked off with a pre-conference Despite resource challenges, I detect this is a
focus day about modernisation, retrofit and MRO reasonably healthy industry, said Lt Gen Coward, but
(maintenance, repair, and overhaul). The presentations underscored that there is clearly a need to improve
encouraged hearty debate about these important the dialogue between suppliers, manufacturers, the
topics from a truly international delegation, which military, and government.
included officials from Jordan, Ghana, Zambia,
Tunisia, and Malaysia.

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MILITARY INSIGHT

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General Dennis L Via
US Army Materiel Command
Procurement and Upgrade
Defence IQ: General, given the complexity and variety capabilities are there, what technology may mature in
of potential future theatres, how is the US Army time, and then where we can modernise our current
planning ahead to ensure readiness for its vehicle fleet fleet with those new technologies we will do so. More
for any eventuality? importantly what we want to do is ensure that were
prepared when we acquire systems in the 2030/40
General Dennis L Via: Certainly the armoured vehicle timeframe, that were going to maintain the leap ahead
fleet is central to our operations for our ground forces. technologies and the technological edge that we enjoy
Were continuously looking at acquiring and filling the today against the perceived threats that we may see at
best capability we can provide for our soldiers as they that period of time and in that particular environment.
deploy in complex operations around the world. Were
placing a lot of research in development funding in
The JLTV will improve

that regard, to ensure that were building capability to
protect our soldiers, provide them mobility, increase
reliability, fuel efficiency,

lethality, as well as the ability to be expeditionary to
fulfil requirements around the world.
DIQ: I know for the long-term youre advancing with

Force 2025 and beyond, looking at the 30s and 40s
protection and
and even further ahead. Although we cant know what
the future conflicts and threats will be, are you taking deployability
a vision a philosophy, perhaps with you on that
journey, to hopefully ensure you can be making the
right decisions as and before they occur? DIQ: In the nearer term well of course see the
introduction of the JLTV. Can you tell us briefly what
DV: Theres always a balance between sustaining the capabilities that will bring to the fight and how that will
force today, which has to be capable of meeting our of course integrate with existing vehicles?
requirements today in terms of missions, and having
a mixed fleet of modernised platforms to be able to DV: Were very much looking forward to the fielding of
meet a variety of threats and a variety of missions. the Joint Light Tactical Vehicle. This vehicle will bring
But at the same time we have to invest in research tremendous capability to our ground forces, improve
and development, to look beyond 2025 as we term reliability, fuel efficiency, protection and deployability.
it, 2025 and beyond to the period of 2030 and And it is built with communications and mission
2040. We are leveraging whats in the art of possible,
prototyping and testing those capabilities, working
with the industry, working with our allies to see what
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command systems in its design. It will complement we think this is a good model to follow. I think as we
the current fleet of equipment that we have and it look at acquiring other platforms in the tactical wheeled
will replace some of our older systems, including the vehicle fleet, we will use the lessons learnt out of this
Humvees that we have in the Light Tactical Wheeled procurement to build upon it for the future.
Vehicle fleet. It wont replace all, however. Well still
have uses for armoured Humvees and other vehicles, DIQ: How is the IAVs event adding to the opportunities
but the JLTV will be a tremendous complement to the or the value that youre finding in terms of engagement
capabilities well see going forward. So we look forward with the wider community?
to being able to have that capability in our force, both
the Army and the Marine Corps. DV: The greatest value I think is in being able to meet
with our allies and partner nations at these type of
events, and so while you have presentations and we
hear perspectives from various countries I was very
privileged to speak here today, too the true value is
what it offers in personal relationships, to be able to
have those type of side-bar discussions, to be able to
talk with industry, to see what capabilities are here
and what theyre promising for the future, to gain a
perspective and to share that. That is the strength of
a conference like, particularly the Armoured Vehicle
conference. It tells you the value of it that it has
continued for 16 years. Bringing this industry, bringing
our allies and partner nations together, as well as
academia, I think it creates a great environment to talk
about and collaborate on what the future possibilities
are. Ive been very impressed and its been a great
forum.
Defence IQ: And thats been seen as a great
achievement from both a military and industry
perspective. The IAVs forum is of course looking to
ensure that engagement persists. How are you looking
to ensure that those sort of relationships continue
consistently in the years ahead?
DV: Were very pleased with the process that went

forward in developing, testing and acquiring this
particular platform, working closely with industry and
the competition that was there, to be able to produce
the capability platform that we needed based on the
requirements that weve identified going forward. What
were going to do is build upon that as we look at other
vehicles that will require other parts of the tactical
wheeled vehicle fleet that well acquire in the future.
Were going to work just as closely with industry. We
think this is part of better buying power. The plusses of
how we acquired and tested for this particular platform

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Lt Gen Seppo Toivonen
Commander, Finnish Army
Defence IQ: General, what can you tell us about the what is actually happening to main battle tanks. What
current priorities for the Finnish army in terms of its is going on in the anti-tank section, and so on? Were
armoured vehicles fleet? investigating this now.
Lt Gen Seppo Toivonen: This is of course a time of DIQ: The idea of balancing capabilities has come up
change and different challenges but, in a way, we have quite a lot at the IAVs conference. How are you finding
a good background in different mechanised units. We an approachable and affordable option plan, and
will continue with those products we have. We were indeed how is the industry helping you come to those
very happy to buy surplus Leopard 2A6 MBTs from the particular decisions?
Netherlands as that will strengthen our fleet where
we already have 100 Leopard A4s. Then I would say ST: Its related to many issues. Its related to the
what we are doing now is looking through the different different organisationshow strong a battle group
options and approaches to modernisation. For you create, what the role of brigade level and above
instance, the BMP 2 with western technology, its still capabilities will be. In Finland we see that the brigade is
a good combat proven tool in the battlefield. Next to still an excellent tool in the battlefield, and through the
come is the upgrade of the CV 9030 in the beginning of brigade level you can bring in new, modern capabilities.
next decade. So, in a way we respond y improving on So, its a combination of ensuring you have a diversity
those how should I say? good products, and thats of tools, but the art comes in how you do that and
the way we are moving ahead. who is doing it. Usually at a battalion level you have to
concentrate on the task, and then at the upper level,
DIQ: What about the longer-term the 2030s and even in the army corps level, you have to find how to fit
beyond? How can you be sure that youll be making the the new capabilities into the equation. There is always
right decisions from that period? something of a changing role when it comes to new
capabilities like electronic warfare. Its growing all the
ST: Thats a good question, and of course the IAVs time.
conference deals with those issues quite well. You
have to have all the senses open, to look past what DIQ: How useful have you found the International
the new technology is offering. You need this kind of Armoured Vehicles conference in terms of knowing
baseline of different capabilities and only then can how to approach all that?
you build up something new. So we are very much
keeping our options open. We know that there will ST: I would say that this is a good concept. Its not
be a need for something new, especially towards the oversized, so it gives you the possibility for interaction
end of the 2020s, and thats why we are following with colleagues and industry. There are good panel
closely whats happening in the market. You also need discussions, excellent presentations and then you also
a good understanding of how the requirements are have something to feel and touch. I would say that this
changing. Having that knowledge will keep us alive conference is really fine.
and in a really good condition until 2030. There is
also being discussed a ten-year time frame to find out International Armoured Vehicles
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Colonel John Atkinson
US Marine Corps
Defence IQ: Colonel, what can you tell us about how Peninsula. Alexander the Great saw similar adversaries
the Marine Corps is anticipating the future operating in Afghanistan, when he was there. So, while some
environment and how that will impact combat people say its new, I think its just changing. The
development? character of warfare is always changing; the nature will
remain immutable.
Were looking at
DIQ: With that chaos and the uncertainty being
predicted ,what does that mean for the equipment that
different ways to
will be fielded or indeed the challenges that you have in
fielding the correct equipment?
harness energy JA: If you dont know what youre going to face its
difficult to fully prepare for it, but if you have the proper
so we can sustain, mind-set, if you have the proper approach intellectually
and you can think through problems, then you have
survive, fight and a good start at it. When you examine the globe for
whats going on and predict as best you can and
thrive in expeditionary more importantly look to your history and understand

how things have progressed and unfolded over time
environments you can begin to build a picture that gives you the basis
you need. With our capabilities and, being a force that
needs to be prepared to fight tonight, anywhere on the
globe, against any threat, or respond to humanitarian
Colonel John Atkinson: The Marine Crops sees situations across the range of military operations, it
an increasingly complex and dynamic operational remains very difficult to get it perfectly accurate. But if
environment, where hybrid threats will become you have a balanced force thats able to operate in any
increasingly capable, with capability sets that in some climate or place, that has the ability to command and
cases will have parity to modern nations. It also control in high-threat degraded environments where
sees some development in the enduring nature of youre leveraging technology but not overly dependent
operational environments war time environments. on it, then you begin to have the opportunity to
Were going to continue to see war be chaotic, and leverage technology and use it to your advantage,
uncertainty in fact will be the only certainty hybrid rather than have it contribute to your own demise and
threats, criminal networks, combining regular and create dilemmas for the enemy, whether the enemy
irregular forces. But again, its new in some ways is a war fighting enemy or a catastrophic storm. And I
but its really old lessons being relearnt. Napoleon think thats at least an approach.
experienced regular hybrid threats on the Iberian

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DIQ: What can we expect from the role of the together, using the best and brightest minds from all
Marine Corps as we swing back to this expeditionary our partners, our allies, our friends around the globe,
operational focus, and indeed what will that do to who are looking at things a little bit differently, and
shape your vehicle fleet? we have been getting the synergy of that interaction.
Thats been the best part, understanding that we all
JA: The Marine Corps has remained Americas have some of the similar tensions, viewing adversaries
expeditionary force in readiness. Weve continued in all their forms. I think that can only help all of us as
to respond to crisis and calamity around the world, we solve these problems. All of us are going to need to
even when embroiled in a decade and a half of work together to solve these problems. No one nation
conflict in Iraq and Afghanistan. But the requirements, can solve the worlds problems and while the United
the capabilities, the force, the training, the mind- States Marine Corps can contribute to it, we certainly
set required for counter insurgency, while we want to have strong, capable, brilliant allies the type
cant step away from that, we need to get back to weve seen at IAVs alongside of us.
our expeditionary roots being able to go into an
environment where there is no infrastructure, where DIQ: And of course its not just partners and allies.
we do not have immediately the ability to rely upon a Theres also the defence industry, the technology
robust joint force, but where we can go in where there providers who are part of this mission, so to speak.
is no infrastructure, leverage the joint capabilities and What can you tell us about those opportunities?
the coalition capabilities that are available, and not
just exist or survive in that environment but thrive in JA: Absolutely. A lot of the industry partners at IAVs
it. Marines have always done that since our beginning, we know and we work with in the United States. Weve
and its just a matter of getting our orientation back on worked very hard. My boss, the Deputy Commandant
that. Were looking at different ways to harness energy, for Combat Development and Integration, is very keen
different capabilities, so we can sustain, survive, fight on establishing and building relationships with industry,
and thrive in expeditionary environments from the sea. to leverage and tap into what theyre doing. There are
We are going back to our amphibious roots to fight a lot of great ideas, a lot of effort, a lot of investment, a
from the sea, on the sea and for the sea, and thats in lot of R&D. Companies are spending a lot of money to
our DNA. So its really just stretching out and getting solve these problems, certainly for business interests
refocussed on it and the Marine Corps is moving in that but also as I believe most of the folks weve dealt
direction swiftly. with here and that we deal with on a daily basis are
patriots and want to serve their nation for serving
DIQ: You really invigorated the discussion at IAVs with the global community for the greater good. A lot of
your presentation. What else have you actually learnt the capabilities theyre delivering, we can leverage.
yourself from the other conversations taking place at Were also leveraging their minds, leveraging their
this event? approach, leveraging their investment, and working as
a collaborative partnership. I think thats the only way
JA: I think it has been interesting to interact with our we are going to really move forward. If we articulate
international partners, our allies, our colleagues, clearly what our requirements are and if industry works
both in uniform and in industry, and see that we are with us to meet them, to keep cost down and deliver
all looking at similar problem sets maybe a little bit the required capability, I think thats the best approach
differently, maybe with a little different vantage point for all of us.
and perspective, but certainly based upon missions,
roles, responsibilities, our position in the world, size
and those type of things. But its good. Were all seeing
the same challenges. Were all bringing different
thoughts to the discussion and environments like this
allow us to collaborate and share those ideas, because
really technology, as I said before is important. Its the
thinking man and woman that are going to survive
and thrive going forward. Were better off coming

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Major Francois Laroche
Armoured Trials and Development Unit
Defence IQ: Major Laroche, could you summarise for now with the more conventional threats on the Ukraine
us the key messages being communicated at the ATDU border, mean we need to be adaptive. We need to
briefing at IAVs? really concentrate all our armoured platforms towards
all types of threat be ready for anything, and then
Major Francois Laroche: The key message is really choose what is appropriate for a specific theatre. It
cognitive burden. So, to explain a bit of what that really is about having a lot of new technology fitted
is, at the end of the day we represent the user, the just to ensure were well prepared when we enter any
multi-mission close combat user, and with those new new theatre, and we never know which enemy were
armoured platforms, like Ajax or the Warrior Capability going to face. That situation will definitely influence the
Sustainment Programme, there comes a lot of new solutions on the market. You need to keep your eye
technology, a lot of new sensor input on those turrets, open to all kinds of threat and be prepared to counter
and so on. You dont want the human inside that turret it.
to be the weakest link when it comes to dealing with
all that information, all those feeds coming to the
soldier, to the gunner, or to the commander. Thats
our message to make sure that people understand
You need to keep
the cognitive burden, the information overload, and
making sure that we understand the problem if there your eye open to all
kinds of threat and be
is a problem. Maybe the new generation using this
technology will feel comfortable inside those new
prepared to counter it
turrets, but we just want to make sure that people,
especially the industry who design those platforms,
understand that you ultimately want your user to
maximise all of those capabilities rather than being
overwhelmed by them.
DIQ: So, as you say, we dont know what the
DIQ: When it comes to your work and the technology future threats will be, but in terms of balancing the
youre seeing coming through, has there been much possibilities that are before us how do you find that
impact from the recent conflict and the way the militaries are able to do that from an affordable
theatres have developed? perspective?
FL: Yes. Ill say they always influence things. Im a firm FL: Thats hard to say. Again, the best solution is to
believer that you should always look at all the potential have most of all those capabilities in one package, like
threats to base your acquisition and procurement you would with a golf bag having a multitude set of
strategy. So, definitely the threat should be a focus
point of all the new technologies. Indeed, the previous
experiences in Afghanistan and Iraq, and especially
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clubs to respond with all those capabilities from light to DIQ: And hopefully IAVs has also been part of that
heavy. Its a big challenge to make it affordable, but its process
essential to have that.
FL: Definitely. This forum also helps and maintains
that relationship in that it has in one central place
the experts from the military, from all these different
countries, and being industry-specific in the area of our
expertise. Everyone is in the same place so having that
networking opportunity, and those great presentations
about all the new technology and capabilities, thats
great. Its a great event.
DIQ: With the test and development research its

undertaking, the Army clearly has a requirement to
do that, but it still needs the engagement of industry
to make it possible. How are you seeing that that
relationship is being consistently managed?
FL: Our unit is at the centre of that. We try to maintain

a good, strong relationship with industry to make sure
that we know whats out there while they want to make
sure that we maintain an open discussion with them to
understand what they are offering. If its a really good
capability, its our role to push it through our chain of
command and try to influence and explain to them that
this is really a great capability worth the investment. So
we have that relationship and its working really well. I
think its a great example of industry and user working
together.

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CREDITS
Authors: Richard de Silva
Steve Philpott
Gaia Racca
Marketing Managers: Sumit Dutta

Pola Zafra-Davis
Jessica Taylor

Chief Designer: Beau Merchant
Interested in sponsoring next years report?
Contact: Amar Karia

[email protected]
+44 (0) 20 7 9515
Defence IQ would like to thank its many sources and contributors,

particularly IHS Janes, Military Tech, IISS, Defence Industry Bulletin,
Victor Barreira, and army-technology.

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About Defence IQ
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and military-related topics. Sourcing interviews and insights directly from senior military and industry professionals
on air defence, cyber warfare, armoured vehicles, naval defence, land defence and many more topics, Defence IQ is a
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What are the main topics covered in the report?

What are the main topics covered in the report?

What are some of the key trends identified in the armored vehicles market?

What are some of the key trends identified in the armored vehicles market?

Defence IQ

International Armoured Vehicle Review 66

About Defence IQ / Disclaimer 77

International Armoured Vehicles

Dr. Fahad Saif Harhara

International Armoured Vehicles

After a brief period of decline in confidence two years

International Armoured Vehicles

International Armoured Vehicles

1. Analysis of respondents by type

Commericial organisation (vendor)

International Armoured Vehicles

33% South America

International Armoured Vehicles

NORTH AMERICA LATIN AMERICA

Saudi Arabia 36%

South Korea 17%

Other Eastern European/Baltics 19%

International Armoured Vehicles

South Africa, Thailand, Sweden and Mexico all saw

Despite Europeans demonstrating strong confidence

International Armoured Vehicles

Unimportant Somewhat important Very important Critical

Ballistic protection 2% 6% 47% 45%

Blast protection / counter-IED 2% 10% 41% 48%

Environmental control systems 3% 42% 44% 12%

Interoperable communications 1% 18% 47% 35%

Load carrying capacity 3% 35% 51% 12%

Mission range 2% 24% 59% 16%

Modular / interchangeable mission 4% 22% 52% 22%

Power/weight ratio 2% 17% 61% 20%

Reducing repair/maintenance costs 1% 22% 47% 31%

Speed/ maneuverability 1% 15% 59% 26%

Easily transportable 1% 30% 51% 18%

Reduced unit cost out of factory 2% 26% 51% 22%

Reliability 1% 3% 43% 53%

International Armoured Vehicles

International Armoured Vehicles

International Armoured Vehicles

10% 21% 14% 28% 5% 15% 0%

International Armoured Vehicles

31% 43% Ballistic armour systems

Ballistic armour systems / counter-IED

International Armoured Vehicles

53% 38% 51% 14% 43% 56% 39%

Active Interoperable Modular ballistic Electric Situational Active Mine Vehicle

International Armoured Vehicles

0% 25% 50% 75% 100%

Getting a foothold in new and

Understanding the future theatre of

Working with government

Working with suppliers

Not a challenge Very challenging

Somewhat of a challenge Insurmountable

International Armoured Vehicles