Rolls-Royce Nears MoD Approval to Manufacture Arjun Tank And Future Combat Vehicle Engines In India

Rolls-Royce Moves To Build Arjun Tank And Future Combat Vehicle Engines In India

Rolls-Royce is moving to anchor a major chunk of India’s future armoured and naval propulsion inside the country. The company has partnered with two defence public sector undertakings (DPSUs) and is awaiting final Ministry of Defence (MoD) clearances to begin local manufacturing of engines for the Arjun main battle tank (MBT), as well as engines for light tanks, the Future Infantry Combat Vehicle (FICV), Future Ready Combat Vehicle (FRCV) and heavy military vehicles (HMVs). 

At the same time, the company is advancing its plans to localise high-end mtu Series 4000 naval engines, tightening its long-term bet on India as a hub for land and sea propulsion. 

Arjun MBT: From Imported Heart To “Made In India” Powerpack

Since its induction, the Arjun MBT has relied on the MTU MB838 Ka-501 engine, a 1,400 hp, 10-cylinder turbocharged diesel supplied by MTU, a subsidiary of Rolls-Royce Power Systems in Germany. 

India’s push for an upgraded Arjun Mk1A and persistent concerns over engine availability and spares have made propulsion one of the programme’s main bottlenecks. Reports this year highlighted engine shortages as a factor delaying Mk1A deliveries and forcing greater local support for the German powerpack. 

Against this backdrop, Rolls-Royce has now offered to localise the MB838 engine in India, with one DPSU partner specifically aligned to the Arjun programme. According to defence industry reporting, the proposal covers production of complete engines as well as critical components and spares, reducing dependence on overseas supply chains and aligning with the government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ objectives. 

Once MoD approvals are in place, the Arjun’s powerpack could shift from being a vulnerable import to a locally manufactured system, with scope for upgrades, overhauls and lifecycle support being handled by Indian industry under Rolls-Royce supervision and technology transfer.

S/Series 199 Family: Common Engine For Light Tank, FICV, FRCV And HMVs

In parallel, Rolls-Royce Power Systems is offering India its latest mtu Series 199 family – described in Indian discussions as the “S199” engine family – for a broad band of future armoured platforms, including light tanks, the FICV, FRCV and heavy military trucks and support vehicles. 

Indian reports say the S199 family covers power outputs from roughly 450 hp up to 1,500 hp, with multiple cylinder configurations to suit different vehicle classes.  That matches Rolls-Royce’s own roadmap for the mtu Series 199:

• Existing and in-development variants from 6-cylinder through 8-, 10- and 12-cylinder engines.

• Power outputs spanning roughly 260 kW to 1,300+ kW (about 350–1,750 hp), allowing the same engine family to power light armoured vehicles, medium tracked platforms and even heavy main battle tanks. 

Globally, the Series 199 already powers or is slated for vehicles such as the Boxer 8×8, ASCOD 2, M10 Booker and upgraded Leopard 1 fleets, giving India access to a combat-proven, NATO-standard propulsion family with strong logistics backing. 

For India, adopting a common 199/S199 family for light tanks, FICV, FRCV and selected HMVs would mean:

• Fewer engine types to support across the Army’s future armoured fleet.

• Shared spares and tooling, improving readiness and reducing inventory costs.

• An easier path to joint upgrades, hybridisation and future power-density improvements that Rolls-Royce is already pursuing for the 199 line. 

One of the two DPSU partners identified in Indian defence circles is expected to host local production of the Series/S199 engines, with Rolls-Royce promising high levels of localisation and progressive transfer of know-how.

Naval Side: Localising mtu Series 4000 Engines In India

On the maritime front, Rolls-Royce has been steadily deepening its footprint in India for several years. In 2023–24, the company and Garden Reach Shipbuilders & Engineers (GRSE) signed a licence production agreement to manufacture mtu Series 4000 “governmental” marine engines at GRSE’s Diesel Engine Plant in Ranchi. 

The Series 4000 engines, part of the mtu brand under Rolls-Royce Power Systems, cover a power band of roughly 746–4,300 kW and are used on fast patrol vessels, interceptor boats, fast attack craft and larger naval platforms. They are prized for high power-to-weight ratio, compact packaging and robust mechanical/thermal stability – attributes that directly appeal to navies seeking more punch in limited hull volumes. 

This naval localisation drive sits alongside earlier cooperation with Goa Shipyard Limited for assembly of mtu Series 8000 engines in India, and a separate venture that has moved production of mtu Series 1600 engines and gensets from Germany to Indian facilities. 

Taken together, the Series 1600, 4000 and 8000 efforts have already positioned India as a production and support base for mtu naval engines across multiple power classes. Rolls-Royce’s latest land-systems proposal essentially extends that template ashore, creating a combined land-and-sea propulsion ecosystem on Indian soil.

Strategic Impact: Cutting Dependence, Creating A Propulsion Hub

If the MoD signs off on the full package, India would gain:

• A locally produced replacement and sustainment path for the MB838 Arjun engine, easing long-running worries about German supply and sanctions sensitivity.

• Access to a modern, scalable engine family (Series/S199) that can be standardised across future tracked and wheeled combat vehicles, from light tanks to heavy support platforms.

• Deeper localisation of Series 4000 naval engines, knitting together Indian shipyards, DPSUs and private industry in a common propulsion supply chain for the Navy and Coast Guard. 

For Rolls-Royce, the move reinforces India’s role as a strategic industrial base, not just a customer. For New Delhi, it fits a broader pattern: German-origin and mtu-family engines that once came almost entirely from abroad are steadily being shifted into Indian factories, supported by Indian suppliers, and maintained by Indian technicians. 

The final shape of the Arjun and S199 deals will depend on MoD negotiations over localisation depth, intellectual property, pricing and export rights. But the direction of travel is clear. In both armoured vehicles and warships, India is trying to bring the “heart” of its combat platforms—the engine—under its own industrial control, and Rolls-Royce is positioning itself as one of the key partners in that transformation.