A hard nut to crack indeed! It took me at least 6 tries to win it (WEGO).
I suggest loading your grunts with ammo and Panzerfaust rounds before you start.
Your troops need to find cover fast because those BMPs will destroy everything that is spotted. IMO the best place to be is on the right hill (the one with the mosque on top). IIRC I rushed two Fuchs to the right hill, one to the entrance of the village and one to the left hill. Then unload all the grunts, split them in two sub-teams and keep them in cover.
Then I sent my two half-squads inside the village.
The Fuchs stay back under cover and only sneak and peak to lay some suppressive fire, preferably from a hull down position.
On the right hill: one half-squad inside the mosque, the other one waiting outside. I'd pull out of the mosque every now and then to avoid returning fire.
2/3 of the Reds went to the village, the remaining 1/3 to the mosque where they were ambushed and dealt with at close range. The rest of the battle consisted in finding the remaining BMPs, distracting them and nailing them with Panzerfausts. The top of the mosque is a good place for BMP hunting, but you can't stay there for long as it is so exposed.
As the left hill was free of enemy troops I was able to sneak my grunts into the trees.
One last thing: at the end of the battle, there was one BMP remaining in the village, at the foot of the hill, and no Panzerfaust left. I managed to rush a Fuchs behind it and kill it with MG fire aimed at its butt! The trick is you can't fire Fuchs' MG at BMP because the IA will ignore your target order as it considers it to be a waste of ammo (very frustrating!). Just use area fire instead: it will work wonders as long as your target can't move easily.