Automotive companies eye opportunities in defence sector amid push for self-reliance: Report

India’s automotive companies and components manufacturers are looking to enter the defence sector in order to offset poor demand for commercial and private vehicles, according to a report by Mint.

These companies want to take advantage of the increased push for manufacturing in India and self-reliance in the defence sector. Ashok Leyland, Force Motors, BEML are among those that consider the increased focus on self-reliance as an opportunity, as per the report.

“There will be a number of indigenized developments, which will bolster the defence logistics industry. Now, with clarity on the restricted items, the industry will work on strengthening its product offerings," Vipin Sondhi, CEO and MD of Ashok Leyland told the publication.

Ashok Leyland is one of the biggest suppliers of heavy vehicles to the armed forces. In its annual report, the company said that it supplied 359 vehicles to the military including armoured vehicles and also supplied components for T-72 and T-90 battle tanks.

“We have been supportive of the Make-in-India programmes for a long time. We have been supplying to the defence force based on their tender-specific requirements," said Deepak Shetty, deputy CEO and MD of JCB India adding that the government’s decision can create more opportunities. JCB currently supplies construction vehicles and equipment to the Army and Border Roads Organisation.

Ministry of Defence on August 9 issued an imports embargo list of 101 items of which 69 items have an imports embargo deadline of December 2020.