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SOURCE: RAUNAK KUNDE / NEWS BEAT / IDRW.ORG

Hyundai Rotem, a key player in South Korea’s defence industry and better known globally for its affordable car range, manufactures one of the world’s most advanced main battle tanks (MBTs), the K2 Black Panther. However, despite the tank’s cutting-edge capabilities, Hyundai officials have confirmed to idrw.org that the K2 Black Panther will not be offered for the Indian Army’s tender for 1,770 Future-Ready Combat Vehicles (FRCVs), which is one of the largest MBT procurement programs in the world.

Hyundai officials did not provide specific reasons for the decision not to participate in the Indian Army’s FRCV tender, but several contributing factors can be inferred.

One of the primary issues may be the high unit cost of the K2 Black Panther. As one of the most advanced MBTs in the world, the K2 comes with a price tag that reflects its cutting-edge features and high-end technology. This could have placed it outside the budgetary scope that the Indian Army is likely considering for the large-scale procurement of over 1,700 tanks.

FRCV also required MBTs on offer to have local tie-ups and agree to high customisation as per Army requirements and also required high localization even to be qualified in the tender. Each MBTs on offer needed to be localised when it was to be offered for User trials that required the company to spend money on localisation without any orders.

Additionally, the transfer of technology (ToT) requirements for the FRCV tender may have played a significant role in Hyundai’s decision. India’s defence procurement policy mandates a high level of indigenization, with the FRCV program demanding a local content level of 55-60%. Achieving this level of indigenization for a tank as advanced as the K2 could prove challenging, as it would involve the transfer of highly sensitive technologies. Hyundai may have assessed that meeting these ToT requirements would be either too costly or too complex to implement within the framework of the tender.

The K2 Black Panther was developed entirely with indigenous South Korean technology, marking a significant milestone in the country’s defence manufacturing capabilities. The prototype of the K2 was unveiled in 2007, and production of the first batch of 100 tanks began in 2014. The K2 is widely regarded as one of the most sophisticated MBTs in the world, boasting advanced firepower, mobility, and protection systems that outclass tanks currently in service with neighbouring countries such as North Korea and China.

Equipped with a 120mm smoothbore gun, an automatic loading system, advanced composite armour, and a Korean-made power pack, the K2 is designed to excel in various combat scenarios. Its impressive suite of electronic systems, including a radar system capable of tracking and neutralizing incoming projectiles, places it among the most formidable modern tanks.

The Indian Army’s FRCV tender is one of the most significant MBT acquisition programs in recent history, aimed at replacing the ageing fleet of T-72 tanks. The tender has attracted global attention, with various international defence companies vying to offer their latest tank technologies to India. The program is part of India’s broader effort to modernize its military capabilities and develop a future-ready Armoured force.

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