
Altay tanks were developed in Turkey. They are a third generation main-battalion tank (MBT) that is based on an indigenous design. This is the country's first indigenous tank development program since the end of World War II. This project has two phases. Phase one covers 250 initial units. Phase two focuses on an enhanced version.
The Altay tank development project was funded by $1 billion from the Turkish Ministry of Defense. It intends to build 1,000 Altay tanks in Turkey. Other Gulf countries could also be interested. But, the first serial production contract has not yet been signed.
The Altay tank development was a joint effort between Turkish manufacturers and several foreign partners. MKEK, Turkey's manufacturer of Rheinmetall Rh120 guns, will license its main armament. An advanced computerized Volkan-III modular firing control system will be used for the vehicle's fire control. ROKESTAN from Ankara will make the armor system. Aselsan, a Turkish defense contractor, will manufacture the control system.

Altay's design was originally intended to be powered initially by a German 1,500hp MTU engine. Turkish companies are not able to manufacture an engine that meets these requirements. Turkish officials have announced a $1-billion competition for engines for the tank. Two Korean companies are expected to supply engines for Altay. In addition, Caterpillar's European division in the UK is in discussions with Ankara to provide an engine for the tank.
The 2011 Defense Exhibition in Istanbul saw the unveiling of the Altay's first prototype. The tank's sidekirts, as well as the turret, are only a mock-up. The tank is equipped a 120mm L/55 smoothbore pistol. Otokar created four prototypes and they passed testing. These prototypes are currently being used for mobility tests. A second prototype is slated for firing tests. All tests of endurance and survivability have been passed. The third prototype will be built by 2013.
Turkey's defense sector has seen rapid growth over the past decade. Turkey has more companies than Japan and Sweden. Seven companies are on the Top 100 Global Defense Companies List. The Turkish government has leased a military-owned tank factory to BMC, which began operations in 2010. BMC has also signed an agreement for the mass production of Altay tanks. BMC anticipates that construction will start in two years and the contract will allow for the establishment of a plant to produce Altay tanks in Turkey.
Altay is divided into two phases. Phase one covers 250 tanks. Phase two is a modified tank with a better armament. The new tank should be in service by 2020. Its main weapon is the Rheinmetall Rh120 Gun, which will have a Turkish licence. The control system will also be manufactured by Aselsan, a Turkish defense company.

Altay tank development began in 2008. The project was funded by $1 billion from the Turkish government. Otokar was the one who built the Altay's prototype. It passed all testing. Nearly 100 companies are currently involved in the project. Some foreign companies are being considered for complex systems integration design.