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The compact design of the UTAR-AAV is an attractive solution to the problem of big size amphibious vehicle available in the market. Most amphibious vehicles aim to navigate in a wide and open area. This paper sets out the design considerations for the development of the compact UTAR-AAV. The body and buoyancy design is made compact to pass through narrow and confined area. Differential drive made zero turning radius possible; this will allow the UTAR-AAV to turn in tunnel, in between tree trunk, and rocks. The design allows the UTAR-AAV to perform rescue mission to allocate victims who trap in a disaster area with aid of sensor and Compact Real-time Control System (UTAR-CRCS) using FPGA system implement.