Constant and unrelenting growth: the problem of the cost of tanks

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Constant and unrelenting growth: the problem of the cost of tanks
Constant and unrelenting growth: the problem of the cost of tanks

Video: Constant and unrelenting growth: the problem of the cost of tanks

Video: Constant and unrelenting growth: the problem of the cost of tanks
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The commercial success of a tank or other armored vehicle depends on several main factors. First of all, these are tactical and technical characteristics. It is of great importance that the parameters and capabilities of the product correspond to the actual needs of the market and specific buyers. In addition, cost remains the most important factor. A sophisticated and prohibitively expensive combat vehicle will attract attention - but this interest will not give any commercial results.

Major trends

Tanks are necessary for any developed army, and therefore such equipment occupies a special place in the international arms market. At the same time, the armored vehicle sector has interesting features associated with the specifics of the production or modernization of tanks, with the needs of buyers, etc.

First of all, it is necessary to remember that only a few countries currently have full-fledged tank production. Production lines operate in Russia, Germany, Israel, India, China, etc. The same countries, independently or with foreign assistance, are developing and implementing projects for the modernization of existing equipment.

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The USA, France, Italy, Ukraine and some other countries have competencies for building tanks, but they are not currently using them. So far, they are limited only to the modernization of existing samples, although the possibility of creating new projects is not excluded.

According to various estimates, the bulk of sales on the international market is accounted for by used tanks. Armored vehicles of older types can be sold in connection with obtaining modern technology. In addition, in the recent past, some countries had large stocks of tanks at their disposal, and they decided to put them on sale.

Used tanks can be sold "as is" or repaired with the restoration of basic functions, depending on the wishes of the customer. It is also possible to upgrade before delivery with the replacement of equipment and the introduction of new functions. Such work is also a fairly profitable business. Moreover, there is and is constantly growing a whole category of modernization projects, initially aimed at foreign orders.

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Thus, at present, any army can find for itself a tank that most fully meets the requirements and corresponds to its financial capabilities. However, it is often the monetary factor that is decisive, which reduces sales of modern vehicles and stimulates the growth of the "secondary market" with used tanks and modernization projects.

With a run on the tankodrome

Tanks of relatively old models, morally and physically obsolete, as well as those that have exhausted most of the resource, do not differ in high cost. For example, the deals of recent years on the sale of T-55 armored vehicles provided for a payment of approx. 150-200 thousand dollars apiece. Eastern European countries, former members of the Department of Internal Affairs, sold T-72s of early modifications at about the same price. Often, rearmament contributes to the fall in prices for newer MBTs, making them an almost useless asset.

Repair and modernization can improve the characteristics of the tank and extend the service life, as well as increase its cost. For example, in 2016 Russia received an order for the modernization of T-72B tanks under the B1 project with the subsequent transfer of the Nicaraguan army. For 50 cars the customer paid approx. $ 80 million - on average, $ 1.6 million per unit.

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Until recently, the repaired MBT was actively traded in Ukraine. After the collapse of the USSR, she actually got a large number of various tanks for free, and they were quickly brought to the international market. For the restored and improved T-64, depending on the features of the update, they asked for $ 1-1, 2 million.

Modern modernization projects provide a significant increase in performance, but are distinguished by high costs. So, in 2013 it was reported that the cost of upgrading the T-72B tank to the T-72B3 for the Russian army exceeds 50 million rubles. (approx. $ 2 million at the exchange rate of that time). About 60% of these expenses were spent on major overhaul of the MBT, the rest - on new components. Later, a new version of the B3 project was created with a different composition of equipment. According to various sources, the cost of such modernization reached the level of 75-80 million rubles.

A similar project to modernize old tanks on a new project is now being implemented in the United States and is designated M1A2C or M1A2 SEP v.3. The first contract for such tanks was signed in 2017 and provided for the upgrade of 45 vehicles for 270 million dollars. Thus, the average cost of modernization reached 6 million - not counting the cost of building a tank in the past.

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Poland recently announced its intention to purchase American tanks of the latest modification. For 250 M1A2C vehicles, spare parts, personnel training, etc. plan to spend approx. $ 6.04 billion. Thus, the life cycle of each tank will cost $ 24 million. Under the terms of the SEP v.3 program, only the existing MBTs are upgraded with the previous update package. Accordingly, the Polish plans show roughly the total cost of production of the tank itself, several of its upgrades, as well as the costs of combat operation.

Equipment from the factory

Thanks to the obvious advantages, tanks of the new construction retain a significant market share. Most of the agreements provide only for the sale of equipment, but in some cases licensed production is organized with the assembly of tanks at the customer's enterprise.

The best-selling tank of our time is deservedly considered the Russian T-90S, and its main buyer is India. Orders for the supply of finished machines were received from the beginning of the 2000s, and then a Russian-Indian agreement appeared on the organization of assembly at the customer's site. According to him, in the coming years, the Indian army was to receive 1000 new MBT with a total cost of approx. $ 2.5 billion (about $ 3.4 billion, taking into account inflation). Thus, one tank cost $ 2.5 million.

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In 2014-15. licensed assembly was organized in Algeria. That contract provided for the manufacture of 200 MBTs of the T-90SA type with a total cost of approx. $ 1 billion, i.e. 5 million each.

At the beginning of the tenth years, the T-90AM and T-90SM tanks, made on the basis of the serial T-90, were presented. In advertising materials and other messages, the cost of an export "SM" of a new construction appeared. Depending on the configuration, it could exceed $ 4 million.

Certain commercial successes are demonstrated by the German Leopard 2A7 + tank, which is the latest modification of the family. So, in 2013, a contract was signed for the supply of 62 similar vehicles and other equipment to the Qatar army. In 2018, we signed an agreement on the supply of 44 tanks and other vehicles to Hungary. In both cases, it was about new-built tanks costing approx. $ 10 million each.

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Since 2014, South Korea has been transferring its tank forces to a modern MBT of its own design, the K2 Black Panther. At the start of production, the cost of such a vehicle was $ 8.5 million, which made it the most expensive tank in the world. At current prices, this is almost 10 million - and the Black Panther retains an ambiguous lead in terms of cost. Despite this, K2 attracts the attention of potential foreign customers. Negotiations are underway with Poland and Norway.

The cost problem

Advanced and sophisticated components and technologies are used to create modern tanks. Due to this, the required level of performance is achieved, but the complexity of production and the price of the finished machine increase. As a result, prices for armored vehicles are constantly and inexorably rising, causing concern to the military departments. Even developed and rich countries are forced to cut their plans, and other states are deprived of any chance of obtaining modern armored vehicles.

It should be noted that in promising projects, customers introduce rather strict restrictions on the cost of the tank and its life cycle. However, the technical requirements for these programs set the next increase in performance and introduce new functions. This should lead to the next complication of the combat vehicle, and at the same time to an increase in prices. It is not known whether it will be possible to find a way out of this vicious circle.

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