Otokar and Automecanica Join Forces: A New Era in Romania’s Defense Manufacturing
On April 25, 2025, a significant partnership was forged in the defense sector as Turkey’s renowned land systems manufacturer, Otokar, entered into a Joint Venture (JV) Agreement with Automecanica S.A., one of Romania’s leading defense companies. This collaboration signifies a major development in Romania’s defense landscape, focusing on the production of advanced armored vehicles and enhancing local manufacturing capabilities.
What Does the Joint Venture Entail?
The freshly minted JV is set to primarily manufacture the Otokar Cobra II 4X4 armored vehicles, renowned for their durability and versatility. In addition to vehicle production, this partnership will extend to engineering, marketing, and after-sales services, providing a comprehensive solution to the Romanian armed forces and contributing significantly to the national defense infrastructure.
The agreement stipulates that both Otokar Land Systems SRL and Automecanica S.A. will each hold a 50% stake in the joint venture. This equal partnership underscores a commitment to shared goals and collaborative excellence in military vehicle production.
Strategic Milestone for Otokar
Otokar, which operates as the defense arm of Turkey’s largest conglomerate, Koç Group, has marked this JV as an essential step forward in its strategic growth within the European defense market. In November 2024, the Romanian Ministry of Defense awarded Otokar a contract for the supply of 1,059 Cobra II armored vehicles, which laid the groundwork for the establishment of the joint venture.
According to Aykut Özüner, CEO of Otokar, this agreement represents not just a contract signing, but a significant leap for Otokar as it endeavours to solidify its presence on a global scale in the defense industry. Özüner stated, “As part of our ongoing project in Romania, we are pleased to announce that we took the first step for the establishment of our new joint venture company.” This sentiment reflects Otokar’s ambition to enhance its global footprint, leveraging its robust export capabilities.
Elevating Romania’s Defense Capabilities
The JV is poised to play a pivotal role in transforming Romania into a strategic production hub for Otokar’s European operations. Sedef Vehbi, head of the Otokar Military Cluster, expressed confidence in fulfilling Romania’s defense needs. She noted that through this joint venture, Otokar aims to not only meet the domestic requirements of the Romanian military but also to act as a springboard for expanded operations across Europe.
Vehbi emphasized the rigorous evaluation process that led to the selection of Automecanica as a partner, highlighting the company’s technical competence and existing manufacturing infrastructure as critical factors in the decision-making process.
Automecanica S.A.’s Commitment
From the Romanian perspective, Andrei Scobioala, Chairman of Automecanica S.A., conveyed enthusiasm and optimism about the collaboration. He recognized Automecanica as one of Romania’s most capable defense firms and asserted that this joint venture is a significant step in boosting both the Romanian Armed Forces and the national economy. Scobioala remarked, “Our unwavering commitment to this project leaves no room for doubt—this partnership will be a key driver in advancing Romania’s local defense capabilities.”
This robust commitment from both sides is poised to foster an environment conducive to innovation and local capability development in defense manufacturing.
The Contract and Production Timeline
The backdrop to this joint venture is a detailed contract that Otokar signed with C.N. Romtehnica S.A., where, following a highly competitive selection process, the company was awarded a 4.26 billion LEI contract for the provision of 1,059 Cobra II armored vehicles to the Romanian Ministry of Defense. Notably, while the first 278 vehicles will be supplied directly from Turkey, the remaining units are set to be manufactured within Romania’s borders, a move that underscores the commitment to local economic growth and job creation.
Production is scheduled to commence in the last quarter of 2025, with deliveries to be completed over a span of five years in various batches. The contract also includes integrated logistics support services, ensuring that the Romanian military will not only receive vehicles but also the necessary infrastructure and support for effective operation.
A Look at the Cobra II Armored Vehicle
The Cobra II is a modern tactical vehicle designed with a modular architecture, allowing for adaptations to various mission needs, making it a preferred choice for over 20 end-users in 13 countries. Otokar boasts over 40 years of experience in the defense industry, marking it as a reputable player in this sector. The vehicle’s appeal lies not just in its adaptability but also in its proven performance, marking a significant advancement in armored mobility solutions.
With this strategic joint venture, Otokar and Automecanica are not just enhancing military capabilities; they are paving the way for a stronger defense posture in Romania and across the broader European landscape.
