@Audacity:
The scenario. An infantry soldier is in a town hex and a vehicle crosses the open ground and enters the same hex. The soldier is entitled to defensive fire.
The rule states the defensive fire effects (ie which hex it occurs) is determined by the defender. In this case that means the defender says if the effect take place in the open ground hex or if it happens in the town hex.
Question. If the defender awaits until the vehicle has entered the town hex, can he use his abilities to attack vehicles in his own hex with the far superior dice rolls or is Defensive fire only about direct fire
Yes. You get to chose where the defencive-fire occurs, and if you have any special abilities such as flamethrower or close assault you can use them. Only a few abilities are worded such that they can’t be used for defencive-fire (eg the Goliath’s ). So if your unit is, for example, simply a regular infantry it will probably be best to make the defencive-fire attack in the same hex where it can use its close assault.