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ARMOURED VEHICLES
MARKET SUMMARY
2015-16
www.ArmouredVehiclesLatinAmerica.com
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an urgent requirement for peacekeeping vehicles, Growth is also being driven in Mexicos commercial
and could be followed by two tranches of 77 units armoured car industry by continued high levels of
each. Even so and in further evidence of the violent crime. New domestic and foreign
national downturn Brazilian deployments competitors have entered this market, establishing
overseas are being reduced, with the current assembly plants in Mexico and appealing most to
number of troops deployed to the United Nation's government authorities and business owners. The
Stabilization Mission in Haiti (MINUSTAH) sinking rate of increase in privately-owned armoured
from 1,343 (May 2015) to 850 by 2016. vehicles is in fact higher in other parts of Latin
America than in Mexico but a sense of insecurity
Top of the immediate security priorities is Brazils continues to pervade as cartels and other crime
planning for the 2016 Summer Olympics. It is groups spread out. The criminal threat is of serious
understood that the armed forces require $56.70m concern to Mexicos economic future. According to
in 2015 and another $30.5m in 2016 to provide recent studies, as much as 3 percent of Mexicos
effective protection during Games with total GDP is lost to crime and violence each year, with
defence spending in support of this endeavour set most occurring from direct losses and a third spent
to reach $167m. Fresh in the memory of organisers on security and prevention. Also of concern is the
will be the civil protests experienced before and extent to which criminal organisations are
during the 2014 FIFA World Cup in Rio, therefore upscaling their own armour and equipment,
making policing a key concern for the coming year. including the emergence of so-called narco tanks
intended to combat both police, military and rival
In 2013, Mexicos President laid out the National gangs on the streets.
Defence Sector Programme aiming to strengthen
all defence institutions in charge of protecting the
territory, fight against organised and transnational
crime, and assure the security of the civilian
population. With the issues ranging from
intelligence strategy and narcotraffic to
cybersecurity and smart cities, the adoption of a
multidimensional and transnational position has
become essential for the countrys future. As such,
Mexicos defence budget sprang 11 percent in
2015.
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responsible for modernising the Armys M113s,
Unimog 416 tactical vehicles and TAM MBTs.
Procurement of 4x4 and 4x2 light vehicles is also
The 2015 defence
believed to be on the agenda. Rumours that budget for Colombia
Argentina was interested in order 14 Brazilian
VBTP-MR Guarani vehicles in the 8x8 variant go was positioned as $12.2
back to 2012, but with increasing pressure on the
countrys finances, it is believed this acquisition billion, with hopes of
has been suspended indefinitely if not entirely
cancelled. Inversely, Argentina finalised an order in
reducing this if peace
June 2015 for 110 8x8 VN-1 wheeled amphibious agreements can be
fighting vehicles from China North Industries
Corporation. Designed with an operational weight reached with FARC
of 21 tons, a single VN-1 armored vehicle is
capable of carrying 11 soldiers in full equipment
and an additional three-man crew. Argentina the first pair of LAV-II "Cayman" 8x8 armoured
secured license to assemble the vehicles at its vehicles of a 32-strong fleet ordered by the
Tandanor-CINAR shipyards. The first batch of the Peruvian Armed Forces in 2014 (in the range of
vehicles will be provided to the Cruz del Sur, a $55m-$67m) and intended to be used to patrol the
joint peace keeping force formed by Argentina and coast, lakes and rivers, as the Peruvian Marines
Chile, and the rest to the 10th Brigade of the prepare for expansion in 2016. These vehicles have
Argentine Army. been designed to Peruvian specifications
lightweight, amphibious, manoeuvrable over
difficult terrain, and low-maintenance. GDLS is also
providing the logistics support package.
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The contract also included repair services for two higher than any other country in the region.
previously acquired vehicles. The Commando is a However, analysts now project expenditure to
larger version of the older American M1117 ASVs return to growth at a CAGR of 5.74 percent from
and offer blast protection to respond to the IED 20162020, when it will reach a value of around
emplacement threat from FARC rebels. The army $3.5 bn. The country has been investing heavily
has about 300 armoured vehicles, including a large into its Northern Border Plan by increasing the
number of Humvees. presence of police and armed forces nationwide,
while the Chilean military has been providing
In May 2014, Canada-based INKAS Armoured limited support functions to local authorities
Vehicle Manufacturing announced that it would without infringing on laws preventing armed forces
supply four of its new INKAS Huron APCs to the from being used in an internal security role. In the
Colombian police force to assist in tactical missions vehicles domain, the Army has been primarily
and presumably border patrol. The country exploring acquisition in the areas of maintenance
rests in a geographic situation that means troops and recovery, spare parts, vision and night fighting
must operate across deserts, mountains, plains technologies and target acquisition. The
and jungles, resulting in a tough demand for development of training centres to improve the
manoeuvrability. versatility and professionalism of its fleets has also
been emphasised. Aside to fleets of Leopard 2A4s
and 1V MBTs, the armed forces boast Marder and
YPR-765 AIFVs, M-113 A1/A2 and Piranha APCs, as
The 2015 defence well as a Marine force adopting new Scorpion light
budget for Colombia tanks and MOWAG Rowland 4x4s. Chile is working
to further its potential for trade and strategic
was positioned as $12.2 partnerships with a number of foreign nations,
including the U.S., South Africa, Israel and China.
billion, with hopes of
Bolivia continues to experience protests from
reducing this if peace within its own military over working conditions,
agreements can be resulting in the dismissal of hundreds of soldiers
and the deployment of armoured vehicles to the
reached with FARC capital La Paz in a bid to quell demonstrations that
have been marred by violence. There remains an
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uneasy relationship between the military and the 6x6 vehicles produced by China North Industries
government. The Army stocks 36 SK-105 Kurassier Corporation. Full delivery is expected by the end of
light tanks and 24 EE-9 Cascavel reconnaissance 2015 or early 2016. Plans have been to purchase a
vehicles, along with APC fleets including M113s, total of 2,106 military vehicles for ground forces
EE-11 Urutus, M9 Half-tracks, V-150s and Mowag between 2009 and 2019. As of August 2014,
Rolands (used by police). Venezuela has also began taking delivery of the
Chinese-made VN-1 8x8 amphibious APC (an
export version of the ZBL-09) to be used by the
Marine Corps. In spite of the shipments, weapons
purchases are expected to slow further as the
country attempts to reign in its financial crisis.
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SPOTLIGHT PROGRAMME
M113B APC Modernisation: Brazil
The Brazilian Army is scheduled to begin The work to be performed by the Pq R Mnt/5
upgrading a second batch of BAE Systems M113B with the assistance of BAE Systems Platforms &
tracked armoured personnel carriers (APCs) in Services is expected to conclude in 2018.
March 2016 to M113A2 Mk1 standard
(designated as M113BR in the Brazilian Army), This second FMS contract follows an initial order
the services spokesperson told Defence Industry worth $47.6 million signed in 2010 between
Bulletin. Brazil and the US, with the company contracted
in December 2011 to modernise 150 vehicles
The first batch of 150 identical vehicles was fielded by the Brazilian Armys 7th, 13th, 20th
locally upgraded by the armys 5th Military and 29th Armoured Infantry Battalions.
Region's Regional Maintenance Park (Pq R Mnt/5)
in Curitiba, State of Paran. The last vehicle was The modernisation programme, which is part of
delivered on 1 December 2015. the armys Strategic Project Attainment of the
Full Operational Capability (PEE OCOP), includes
The contract for modernising a new batch of 236 the installation of a 265hp Detroit Diesel
vehicles fielded by the 5th Armored Cavalry Corporation (DDC) 6V53T diesel engine and an
Brigade and 6th Armored Infantry Brigade was Allison Transmission TX-100-1A with
signed in December 2014 with the US modifications to its suspension, differential and
Government through the US foreign military sale cooling system. The programme will provide the
(FMS) process, with the U.S. Army having vehicle with improved mobility, and extends the
awarded BAE Systems Platforms & Services a fleet service life.
$54.6 million contract to carry out the task in July
2015. Modernisation kits are expected to arrive in The Brazilian Army originally received 584 M113
Brazil from February 2016. series vehicles from the US. The fleet was later
modernised in the 80s by the local (and now
folded) firm Motopeas to M113B standard with
the installation of a diesel engine and protected
weapon mount among other new items. The
service is also receiving 34 surplus M577A2
command post vehicles and 12 M113A2
personnel carriers from the US.
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Confidence levels in the Latin American
armoured vehicles market
Based on survey responses from regional industry professionals and
military personnel collated for Defence IQs annual Global Armoured
Vehicles Market Report 2016
How confident are you in the future of the armoured vehicle market in
your region over the next 10 years?
Confidence in the global armoured vehicle market is at a five-year high with 43 percent of respondents
stating a firm assurance in order books over the next decade. This represents a 10 percent bump from
last year where just a third of participants identified being very confident in the future of the market.
In comparison, confidence in the Latin American market has dipped in the past year and is less
favourable than other regions. However, a majority of respondents dealing primarily in this region still
professed confidence in the market, if cautious. This is likely due to the reasonably flat level of defence
and security spending across most Latin American countries over the past year, contrasting with a
notable period of heavy investment in previous years.
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Overview of key threats to Latin American
armoured vehicle survivability
Based on survey responses from regional industry professionals and
military personnel collated for Defence IQs annual Global Armoured
Vehicles Market Report 2014-15
Blast and IEDs are seen as the most significant threat to armoured vehicles over the next decade.
Globally, 78 percent of respondents believe the IED to be the key threat, followed by heavy machine gun
ballistic attack (68 percent) and RPGs (65 percent), although the order of these flipped when compared
to last years survey, indicating that HMG threat has become marginally more potent over the last 12
months.
Latin America saw similar results, with blast and IED concerns also topping the bill. CBRN and directed
energy attacks feature much lower on the list of priorities (likely owing to a much lower possibility of
engagement with high-end military forces), but fears surrounding small arms fire and dealing with
difficult terrain or climate are higher in this region than the global average.
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June 30 - July 01, 2016: Lima, Peru
What is the future of Armoured Vehicles in Latin America?
Discover the answer by joining Defence IQ at the 5th annual Armoured Vehicles conference in Latin
America. This event offers an unrivaled opportunity to engage with the most important issues for the
procurement, sustainment, training and operational use of armoured vehicles in Latin America.
Armoured Vehicles Latin America: the premier regional forum for protected mobility is delighted to
announce that the 2016 conference will be held in Lima, Peru, with official support of the Peruvian Navy.
Bringing together senior officers responsible for current and future requirements from across the region
this is the essential forum to share expertise, build contacts and establish long-lasting relationships.
Benefits of Attending:
Gain insight and expertise from serving military officers at the forefront of acquisition along with the
local industries that support them
Understand the latest procurement requirements for armoured vehicles in the region including
Colombia, Brazil, Chile, Ecuador and Peru
Discuss the latest in modernisation programmes and through life sustainment for your vehicle assets
Consider the solution to SWaP trade-offs in the context of increasing operational demand, budgetary
pressure and enhanced technological capability
Learn how to become a thought leader in the Latin American armoured vehicle market
Share candid discussion opportunities with the key stakeholders from military and industry focused on
meeting the requirements for armoured vehicle capabilities across Latin America
Download the agenda here for the full speaker and session line up.
To register you place, simply complete the form below and email it to enquire@defenceiq.com:
Alternatively, you can call +44 (0)20 7368 9737 or visit www.armouredvehicleslatinamerica.com.