FEV Group Secures Key AVNL Contract For High-Power 600HP Armoured Vehicle Engine Development Wednesday, February 11, 2026 by Indian Defence News
Engineering services firm FEV has secured a significant contract from Armoured Vehicle Nigam (AVNL), the Chennai-based defence public sector undertaking, to develop a high-performance powerpack exceeding 600 horsepower for next-generation armoured vehicles. This partnership marks a strategic advancement in India’s defence manufacturing ecosystem.
The announcement, made on Monday, underscores FEV’s role in bolstering the nation’s push towards technological self-reliance. Sahil Dhuria, Director of Business Development and Marketing at FEV India, described the project as a pivotal milestone that aligns seamlessly with India’s vision for indigenous capabilities in critical defence technologies.
Under the agreement, FEV will leverage its specialised expertise in powertrain development, system engineering, integration, and validation. These competencies are essential for crafting a powerpack that meets the demanding specifications of contemporary armoured platforms.
The powerpack is engineered to deliver exceptional power density, ensuring compact yet potent performance within constrained vehicle spaces. This attribute is crucial for modern armoured vehicles that prioritise mobility without compromising on firepower or protection.
Durability forms a cornerstone of the design, with rigorous standards to withstand prolonged operational stresses. Reliability is equally paramount, as any failure in the field could prove catastrophic during high-stakes missions.
The system must excel under extreme environmental conditions, from scorching deserts to frigid high-altitude terrains. It is also tailored for mission-critical reliability, maintaining consistent output across varied scenarios such as rapid manoeuvres or sustained engagements.
AVNL’s Engine Factory in Avadi, a key production hub, will oversee aspects of this development. Anurag Kumar Sharma, Chief General Manager there, highlighted the project’s importance as a foundational element for future armoured platforms, demanding advanced engineering and seamless system integration.
This collaboration fits into India’s broader ‘Atmanirbhar Bharat’ initiative in defence, reducing dependence on foreign imports for vital components. Powerpacks of this calibre are integral to vehicles like future infantry combat vehicles or upgraded main battle tanks.
FEV’s involvement brings global best practices adapted to Indian needs, drawing on its mobility sector experience. The firm has previously contributed to engine and transmission projects, positioning it well for this defence-oriented endeavour.
For AVNL, inheritor of Ordnance Factory Avadi’s legacy, this order reinforces its mandate to modernise armoured vehicle fleets. The PSU has long produced platforms like the T-72 and BMP-II, and this powerpack could upgrade their propulsion systems significantly.
The 600-plus HP rating represents a leap from existing indigenous engines, such as those around 500 HP in current platforms. This upgrade promises enhanced speed, acceleration, and payload capacity, vital for countering evolving threats.
Development will likely involve advanced simulation, prototyping, and field trials to validate performance. FEV’s validation protocols ensure compliance with military standards like MIL-STD for vibration, temperature, and electromagnetic compatibility.
Integration challenges include mating the powerpack with transmissions, cooling systems, and vehicle electronics. FEV’s systems engineering approach addresses these, minimising risks during full-scale production.
This project could spur private sector growth in defence, with FEV exemplifying how engineering firms can partner with PSUs. It aligns with government policies incentivising such collaborations through iDEX and technology development funds.
Economically, it promises job creation in high-skill areas like design and testing, centred in hubs like Chennai and Pune where FEV operates. Skill transfer to Indian engineers will further indigenise expertise.
Geopolitically, a self-reliant powerpack enhances India’s strategic autonomy, especially amid border tensions requiring robust armoured forces. It positions AVNL to export upgraded vehicles, boosting defence diplomacy.
Challenges ahead include scaling production while maintaining quality and cost-effectiveness. Supply chain localisation for components like turbochargers and electronics will be key to avoiding delays.
The FEV-AVNL tie-up exemplifies proactive steps towards a future-proof defence industry. As India accelerates military modernisation, such innovations will underpin operational superiority on land.
Based On ET Manufacturing Report
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