DRB-HICOM Defense Technologies, known as Deftech, is a wholly owned subsidiary of DRB-HICOM Berhad, Malaysia.
Payloads of the military vehicles range from 2.5-5 tons, a statement by Tata Motors said.
Deftech initially will work on Tata's heavy-duty LPTA 715 and LPTA 1623 all-terrain high-mobility vehicles.
The vehicles' chassis are suitable for various configurations including troop carrier, command-post, ambulance, reconnaissance mission and as an armored carrier communication shelter.
The vehicles, in service with the Indian army, are powered a Cummins 6BT engine -- a straight 6-cylinder power plant whose earlier variants have seen service in Dodge Ram trucks.
The LPTA 1623 is suited particularly for deserts, hills and marshes because of its high ride while the LPTA 715 is a general service truck that can carry 22 combat personnel.
Tata Motors said it has been associated with Malaysia's off-road defense and security forces since 1958 and has supplied thousands of vehicles to the military and paramilitary forces.
Tata Motors had consolidated revenues of around $27 billion in 2010-11 through subsidiaries and associate companies in the United Kingdom, South Korea, Thailand, Spain and South Africa. Among them is Jaguar Land Rover and Fiat, whose cars it distributes in India.
Last month Malaysian heavy-duty and special purpose vehicle manufacturer Amdac said it will send three prototypes of its all-wheel drive 2.5-ton Adiwira Interchangeable Tactical Mobility Systems trucks for trials to the Army Combat Training Center Pulada in southern Malaysia, the Bernama news agency said.
The Adiwira is based on the French ALM-ACMAT TF trucks and can carry up to 18 people depending on configuration.
Amdac Chief Executive Officer Marina Yahya said the company has supplied more than 500 specialized and customized vehicles to the Malaysian armed forces, fire and rescue departments and other organizations, both local and international.
Adiwira is interoperable and interchangeable, thus enabling mission, focus and role to be customized from the base vehicle for immediate operational requirement," she said.
Amdac was formerly known as Pesaka Astana, a wholly owned Bumiputera company, meaning it was set up to employ ethnic Malays.
Amadac's home sales account for around 70 percent of its annual turnover.
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