Further development of the Challenger 1 by Vickers Defence Systems resulted in the Challenger 2 MBT, of which 386 have been ordered by the British Army, with deliveries running from 1994 through to 2,000. Oman has ordered 18 Challenger 2 MBTs. With the introduction of Challenger 2, all remaining Chieftain and Challenger 1 MBTs will be phased out of service with the British Army.

Although similar in appearance to Challenger 1, the Challenger 2 MBT has many improvements including a brand new turret armed with the latest 120mm L30 rifled tank gun firing a new APFSDS-T (Armour Piercing Fin Discarding Sabot Tracer) projectile with a depleted uranium penetrator. The new computerized fire control system, all electric gun control and stabilizing system, and stabilized sights for the commander and gunner give a high degree of first round hit probability under both day and night conditions.

Standard equipment includes a thermal camera over the manlet of the 120mm gun which provides a picture for gunner and commander, as well as an NBC (Nuclear, Biological, Chemical) system, mounting points for additional fuel drums at the rear, and mounting points for a Combat Dozer Blade at the front of the hull.

• The kit consists of over 190 parts.
• Newly tooled parts in accurate detail.