Otokar signs $1.47B deal to export wheeled armored vehicles

Turkish automotive and defense manufacturer Otokar announced on Thursday that it had signed a $1.47 billion export contract to supply wheeled armored vehicles and integrated logistics support services, marking one of the largest defense export agreements disclosed by the company in recent years.

The agreement, valued at $1,472,080,360, covers various types of wheeled armored vehicles, the company said in a disclosure to Türkiye's Public Disclosure Platform (KAP). Otokar will provide the customer with letters of guarantee totaling $441.6 million to secure its contractual obligations and the advance payment, according to the filing.

Approval Process

The contract will take effect after the necessary official approvals are obtained, procedures for letters of guarantee are completed and an advance payment is received, Otokar stated. The company did not disclose the identity of the foreign customer or the specific vehicle models covered under the agreement.

Production Timeline

Vehicle deliveries are scheduled to begin in 2027 and be completed in batches over three years, while the contract will remain in force for seven years, the disclosure noted. Otokar manufactures tactical wheeled vehicles at its facilities in Sakarya, including the Arma and Yavuz armored personnel carriers deployed by several armed forces worldwide.