The Challenger 2 (Export) is an export modification of the FV4034 Challenger 2 main battle tank. It has a new integrated weapon control and battlefield management system that includes a gyro-stabilised panoramic SAGEM MVS 580 day/thermal sight for the commander and a gyro-stabilised panoramic SAGEM SAVAN 15 day/thermal sight for the gunner, both with a laser rangefinder. With a common engagement mechanism, this gives the tank hunter-killing capability. Optionally, a servo-controlled overhead weapons platform can be slaved to the commander's sight and operated independently of turret rotation. The power pack has been replaced by a new 1,500-horsepower EuroPowerPack with a transversely mounted MTU MT883 diesel engine and Renk HSWL 295TM automatic transmission. Significant improvements in vehicle performance and durability have been made. The EuroPowerPack, which is smaller but more powerful, includes a cooling system and air intake filtration system for desert combat. In 2002, BAE Systems made an attempt principally aimed at exporting to the Hellenic Army, a competition won by the Leopard 2 main battle tanks. BAE later declared that the development and export marketing of Challenger 2E would be discontinued in 2005.

Introduced in Update "Sky Guardians", the Challenger 2E is very similar to the standard Challenger 2, with the exception of much-needed increase in mobility. This is owing to its improved EuroPowerPack, which includes a transversely mounted MTU MT883 diesel engine in place of the comparatively underpowered Perkins CV12-6A found in all previous Challenger 2 models. Players can play slightly more aggressively during battles by rushing to strategic locations early on during matches.