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What Is Limit of Armored Vehicle Production Localization in Ukraine, Why Going Further May Be Difficult for Now

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Inguar-3 armored vehicle / Photo credit: Inguar Defence
Inguar-3 armored vehicle / Photo credit: Inguar Defence

Domestic production of armored vehicle components offers clear advantages for industry and reduces a country's dependence on foreign supplies, but the localization process also has its own limitations

Inguar Defence has localized the production of 65% of the components used in its new Inguar-2 armored vehicles in Ukraine, including all suspension components. However, this figure may represent the practical limit of what can realistically be achieved in Ukraine for now.

As Artem Yushchuk, the company's director, told the Ukrainian outlet Oboronka, exceeding 65% localization is almost impossible at present, as engines, transmissions, electronics, and a number of other components cannot realistically be manufactured in Ukraine in the coming years.

Read more: How Much Does Ukraine's Combat-Proven Inguar-3 Armored Vehicle Cost, What Important Caveats Should Be Considered?
What Is Limit of Armored Vehicle Production Localization in Ukraine, Why Going Further May Be Difficult for Now
Inguar-2 armored vehicle / Screenshot from an Inguar Defence video

Defense Express notes that this provides an interesting benchmark for assessing how far a Ukrainian manufacturer can advance the localization of armored vehicle production. And the result appears rather optimistic, considering a whole range of factors.

Since the collapse of the Soviet Union, Ukraine has undergone a process of deindustrialization, while some types of products had never been manufactured in the country even before that. However, certain capabilities, particularly in the defense industry, have gradually been restored, while entirely new production sectors have also emerged.

What Is Limit of Armored Vehicle Production Localization in Ukraine, Why Going Further May Be Difficult for Now
The 2S22 Bohdana self-propelled howitzer is one of the successful examples of Ukraine developing new manufacturing capabilities / Photo credit: 30th Separate Mechanized Brigade

A good example is Ukraine's domestic artillery production, which has been expanded to significant volumes and is now constrained more by funding than by manufacturing capacity. Inguar Defence itself has also mastered the production of a wide range of components, including suspension systems.

However, establishing certain modern manufacturing capabilities requires considerably more time and resources. At the same time, the persistent threat of russian strikes remains a major challenge, as production facilities can be targeted by enemy missiles and drones.

What Is Limit of Armored Vehicle Production Localization in Ukraine, Why Going Further May Be Difficult for Now
Production of components for Inguar armored vehicles / Screenshot from an Inguar Defence video

Another important factor is that domestically manufactured products may initially remain more expensive than mass-produced imported alternatives. As a result, establishing their production in Ukraine may not always be economically viable during wartime, when the immediate priority is to meet the needs of the Ukrainian Defense Forces on time and under conditions of limited funding.

Overall, while production localization reduces a country's dependence on foreign supplies, achieving complete self-sufficiency is currently extremely difficult. Against this background, localizing the production of 65% of the components required for an armored vehicle is a strong result.

Read more: ​What Is Known About Ukrainian Inguar-3 Armored Vehicle with a Ramp for Evacuating the Wounded