Tata Motors is likely to sign the Safari deal with the Indian Army after the Christmas break. The company has stated that an agreement will be signed regarding this deal after the holidays.
Tata Motors will be selling 3,192 Safari Storme SUVs to the Indian Army to replace the iconic Maruti Gypsy which has been serving the army for decades.
Vice-President, Defence Business, Tata Motors Ltd, Vernon Noronha said, "We are now exchanging first draft of the contract. We hope that after the Christmas holidays we will be able to sign it."
Noronha stated that Army was in need of a vehicle with hardtop, that runs on diesel and equipped with climate control feature. He stated that Tata Motors have finished with the contract negotiation committee meetings.
He added, "Tata Motors and Mahindra and Mahindra were the last two to be in the fray and when the envelope opened, we gave a better deal to the Army."
In the initial phase 3,192 Safari Storme will be supplied to the Indian Army, but there are over 35,000 Gypsy's employed in the army and they have to be replaced.
Tata Motors official also stated that if the Army demands any other variants, the company will be happy to provide. The company is also aiming at a Rs 70,000 crore project for future infantry combat vehicles (FICVs) for the army.
The contenders for this project are L&T, Mahindra, Pipavav Defence & Offshore Engineering and two joint ventures of Tata, the Tata Motors-Bharat Forge and Tata Power SED-Titagarh Wagons.
The Safari deal will be the second major order for Tata Motors this year. Earlier the company had got a Rs 1,300 crore project in January to provide high-mobility military trucks for the Indian Army.
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