I am all for private sector including Kalyani to dive head first into armour development. The more the merrier.
But this ALSV is a "what do we have lose" idea. They are not a vehicle manufacturer i.e. don't have a readily available assembly line or skilled manpower from the get go unlike other private players. SAme goes for sub-systems like engines which AFAIK they don't make.
As I said earlier, Kalyani group is an awesome conglomerate but this is not exactly a shining example of their ingenuity.
Compare this AL's approach. They bought out LM's design and put Indian sub-systems to bring out a very competent product (at least on paper).
They didnt make artillery guns, either, but their approach of buying out assembly lines, forging technical partnerships with outside OEMs and tech developers like DRDO, etc. they have a whole line of artillery guns for several requirements and some of which isnt a requirement.
It helps having auto background and connections, you're right, but historically, several companies have gotten into defence and aerospace production from making things like fridges, etc. That's the phase India private sector is going through. You have a spring company in India making sniper rifles and short piston AKish prototypes right now, they're on their mark 5 or something based off of user feedback. Hell, look at the flashy recent Turkish armor designs, what auto background do they have? The likes of Bharat Forge and L&T can most definitely get into armour and they are. They have already fostered a culture of excellence in their own domains which they can transition into defence and aero.
I have seen all the LSV designs. You dont need to show me. Let the actual competitive trialing show the outcome, because even that ugly OFB MPV beat out Mahindras.