Indian Companies Stake Claim to African Vehicle Market
By Oscar Nkala
GABORONE, Botswana — Indian military vehicle manufacturers have joined the scramble for the African defense market with Tata Motors and Ashok Leyland delivering nearly 1,200 vehicles to at least six African armies between February and July.
In July, Ashok Leyland delivered 633 out of an order of 670 troop carriers, buses, transport trucks, water tankers, fuel tankers, fire-tenders, ambulances and light commercial vehicles ordered by the Zimbabwe Defense Forces late last year. The equipment was acquired at a cost of US $50 million secured from India's Exim Bank.
A Zimbabwean government official who declined to be identified told the privately owned Zimbabwe Independent business weekly that Ashok Leyland will also provide training for Zimbabwean technical staff in vehicle operation and maintenance.
“The vehicles, which include military tankers, trucks and buses, have been delivered and are being kept at the Zimbabwe National Army Ordnance Supply Depot in Harare pending distribution to various Army bases around the country," said the official.
He said the vehicles were ordered under cover of the Ministry of Hospitality and Tourism to avoid a political backlash from opposition and civil rights groups who have protested against the prioritization of military acquisitions in a country with pressing social and economic problems.
The Army declined to comment on the delivery, but Hospitality and Tourism Minister Walter Mzembi confirmed it, saying some of the vehicles will be used to promote tourism and undertake anti-poaching operations while the rest will be used by other government departments, which include the Army and the police.
Speaking at a ceremony held at the port of Mumbai, India, on July 26, Exim Bank Managing Director Yaduvendra Mathur said the bank's Buyer Credit initiative, which falls under the National Export Insurance Account, is a unique mechanism that provides safe financing options to Indian exporters and helps them gain access to new markets in developing countries.
Indian defense market analyst Nitin Mehta told Defense News that the Zimbabwean contract presents a unique opportunity for Ashok Leyland to consolidate its position in the African defense market, which is predicted to grow to $20 billion by 2020.
“The contract with a private sector defense company is the beginning of a new market opportunity in Africa and the growing Indian defense market," Mehta said.
In addition to Zimbabwe, Ashok Leyland is supplying the same vehicle configurations to the Tanzanian People's Defense Force at a cost of nearly $35 million. Commenting on the Zimbabwean and Tanzanian orders, Ashok Leyland Managing Director Vinod Dasari said the company deliberately shifted its focus to meet the needs of the African military and commercial vehicle markets to boost sales.
"These projects are a continuation of the many pilot projects we have done across Africa to offer integrated solutions and these orders have been won in the face of stiff global competition. It is very encouraging to see our efforts bear fruit. I am confident this is the beginning of a successful new area of enhanced cooperation between Ashok Leyland, Africa and our valued customers," Dasari said.
He said the company previously supplied military vehicles to Kenya, Djibouti and the Seychelles, while Botswana ordered a limited number of its commercial trucks and buses for use by government departments.
At the same time, Tata Motors announced it delivered 550 out of the 585 military vehicles ordered for at least four African armies taking part in the United Nations Multi-dimensional Integrated Stabilization Mission in Mali (MINUSMA) peacekeeping force in Mali.
The vehicles include troop carriers, water and fuel tankers, recovery and refrigeration trucks and buses. Vernon Noronha, Tata Motors vice president for defense and government business, told Indian newspaper The Hindu that the company has expanded its range of products to meet the military demands of Africa and other regions of the developing world.
“Tata Motors exports its range of specialized defense vehicles to South America, Asia and the African regions. With its rich portfolio of multi-axle 12x12, 8x8 and 6x6 heavy-duty vehicles, the company has started supplying vehicles across the world, having established itself as a supplier of specialist vehicles. We have already delivered 550 units to Mali and we are in the process of delivering the rest," Noronha said.
Apart from Africa, Tata Motors last year won a contract to supply 1,239 high-mobility vehicles with cargo cranes and 500 units of General Service vehicles to the Myanmar Army and the Malaysian Army.
He said the company is looking to expand the export of troop and weapons carrying variants of military vehicles to more countries in the North African and Middle Eastern regions in the near future.
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Indian Companies Stake Claim to African Vehicle Market
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