The Israel Defense Forces (IDF) is test-driving the `Scorpio', the flagship utility vehicle of leading Indian automobile manufacturer Mahindra and Mahindra and is likely to place orders once it was found to be meeting the required standards.

The Scorpio will have a turbo diesel engine developed in Europe and an automatic gearbox manufactured by General Motors and will comply with updated EU standards, the 'Globus' business daily reported.

Scorpio has a manual gearbox but the model to be sold in Israel will have an automatic gearbox, which is still under development.

The Israeli version of the vehicle is expected to cost only $7,000 and the Elul Group, Mahindra's defence division in Israel, will facilitate imports by obtaining an official franchisee from Tel Aviv, the report said.

If Mahindra decides to market the Scorpio in Israel, it will be the cheapest diesel automatic off-road vehicle in the Israeli market.

Bilateral relations between India and Israel have increased significantly in recent years, with both nations experiencing a convergence of interests on a number of issues.

Besides defence production, a number of Indian companies have signed deals with Israeli companies in the infrastructure and agriculture sectors.

The Tata Group, recently agreed to jointly develop missiles, UAVs, radar and electronic warfare systems with IAI (Israel Aerospace Industries).

Mahindra & Mahindra's flagship utility vehicle, which already had made its mark in some European countries, had main advantage of its price.

"The model that will be sold in Israel will cost only USD 7,000," the report said.

The Elul Group Ltd, Mahindra's defence division in Israel -- which does not import vehicles, will reportedly arrange regular imports and will seek a franchisee from local vehicle market to sell the car.

If Mahindra decides to market the Scorpio in Israel, it will be the cheapest diesel automatic off-road vehicle in the Israeli market, the report said. PTI