Jaguar Land Rover is in “live discussions” with Nato countries interested in the revamped Defender military vehicle as it seeks to capitalise on Europe’s rearmament drive. JLR, also bidding for a UK defence ministry contract to replace the country’s ageing fleet, is looking beyond its longstanding British Army relationship for new revenue amid weakening demand and higher costs.

Patrick Mc Gillycuddy, JLR’s global managing director for the Defender, said the new Defender Wolf Series II was ideal for armed forces because it was adaptable to a “broad variety of roles and requirements”. The group, owned by India’s Tata Motors, announced plans to cut 4,000 jobs, nearly 10 per cent of its global workforce, after a cyber attack disrupted its supply chain.

The British Army is retiring more than 5,000 vehicles under its light-mobility vehicle programme. Greece, Italy, Germany and Turkey are also modernising fleets. Rivals include Jim Ratcliffe’s Ineos Automotive, Ford, General Motors, Babcock International and an alliance of Rheinmetall and Mercedes-Benz.

Francis Tusa called JLR the “most politically acceptable” UK choice, although JLR denied a link between job cuts and the bid. The Defender is designed and engineered in the UK but built in Slovakia.