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The Indian Army may have shortlisted Mahindra Scorpio and Tata Safari for supply of around 3,200 vehicles to replace its old fleet of SUVs, but the defence force seems in no hurry to phase out its old favourite, the Maruti Suzuki Gypsy.
The Indian Army may have shortlisted Mahindra Scorpio and Tata Safari for supply of around 3,200 vehicles to replace its old fleet of SUVs, but the defence force seems in no hurry to phase out its old favourite, the Maruti Suzuki Gypsy.
The country’s largest carmaker has bagged a contract to supply 2,071 Gypsies to the Army, three people in the know told ET. The order under ‘GS 500′ category was placed just a few weeks ago and deliveries will start in the next few months, they said. Assuming a ticket size of about Rs 6 lakh, the order could fetch Maruti Suzuki almost Rs 125 crore.
“This order is part of the earlier tender. However, the company received the order very recently,” said one of the three sources. “The deliveries will start in the coming few months. There is a continuous discussion with the government for future orders too,” the person said.
A Maruti Suzuki spokesperson confirmed the development, but declined to share the specifics of the deal.
Launched in 1985, the petrol-run Gypsy lost out to diesel-run SUVs in the consumer market long ago, but it remained a favourite with the Indian Army. Ever since Maruti Suzuki got its first order in 1991, it has delivered more than 35,000 Gypsies to the army. In fact, it bagged its single-largest order from Indian Army for over 4,000 Gypsies last year.
Gypsy has had a monopoly in the GS 500 category of vehicles, or vehicles with maximum payload of 500 kg, over the last decade or so. One of the persons in the know said officially there’s no indication yet on likely phase out of the vehicle.
“While there is a new category of vehicles that government has floated — GS 800 (with payload up to 800 kg), but there is nothing from army or the ministry that has communicated and said the GS 500 category of vehicles, where Gypsy is nominated, will disappear,” the person said. “So how can one say this is the end of the road?” he said on condition of anonymity.
The Gypsy is specially designed for the Army with special accessories. Army uses this all-purpose vehicle on various terrains right from city roads to mountains and deserts. It also has hooks in the rear for towing military equipment.
The Army is alternatively looking for vehicles with hard top and 800 kg payload with an air-conditioning option.
Tata Safari and Mahindra Scorpio had passed technical trials and these two companies are likely to participate in the tender for more than 3,200 vehicles, expected to be floated shortly.
Maruti Suzuki shares scaled a fresh life-time high of Rs 4,182 on Wednesday before ending the day with a gain of 2.6 per cent at Rs 4,155.
The Indian Army may have shortlisted Mahindra Scorpio and Tata Safari for supply of around 3,200 vehicles to replace its old fleet of SUVs, but the defence force seems in no hurry to phase out its old favourite, the Maruti Suzuki Gypsy.
The country’s largest carmaker has bagged a contract to supply 2,071 Gypsies to the Army, three people in the know told ET. The order under ‘GS 500′ category was placed just a few weeks ago and deliveries will start in the next few months, they said. Assuming a ticket size of about Rs 6 lakh, the order could fetch Maruti Suzuki almost Rs 125 crore.
“This order is part of the earlier tender. However, the company received the order very recently,” said one of the three sources. “The deliveries will start in the coming few months. There is a continuous discussion with the government for future orders too,” the person said.
A Maruti Suzuki spokesperson confirmed the development, but declined to share the specifics of the deal.
Launched in 1985, the petrol-run Gypsy lost out to diesel-run SUVs in the consumer market long ago, but it remained a favourite with the Indian Army. Ever since Maruti Suzuki got its first order in 1991, it has delivered more than 35,000 Gypsies to the army. In fact, it bagged its single-largest order from Indian Army for over 4,000 Gypsies last year.
Gypsy has had a monopoly in the GS 500 category of vehicles, or vehicles with maximum payload of 500 kg, over the last decade or so. One of the persons in the know said officially there’s no indication yet on likely phase out of the vehicle.
“While there is a new category of vehicles that government has floated — GS 800 (with payload up to 800 kg), but there is nothing from army or the ministry that has communicated and said the GS 500 category of vehicles, where Gypsy is nominated, will disappear,” the person said. “So how can one say this is the end of the road?” he said on condition of anonymity.
The Gypsy is specially designed for the Army with special accessories. Army uses this all-purpose vehicle on various terrains right from city roads to mountains and deserts. It also has hooks in the rear for towing military equipment.
The Army is alternatively looking for vehicles with hard top and 800 kg payload with an air-conditioning option.
Tata Safari and Mahindra Scorpio had passed technical trials and these two companies are likely to participate in the tender for more than 3,200 vehicles, expected to be floated shortly.
Maruti Suzuki shares scaled a fresh life-time high of Rs 4,182 on Wednesday before ending the day with a gain of 2.6 per cent at Rs 4,155.
