European defense manufacturers are accelerating domestic production capabilities of Armored Fighting Vehicles (AFV) amid ongoing regional security tensions. Patria and General Dynamics European Land Systems initiated 42 ASCOD Infantry Fighting Vehicle (IFV) assembly in Latvia under a €373 million contract, while Tatra Defence Vehicle unveiled its PANDUR II 8×8 EVO at IDET 2025 in the Czech Republic, anticipating domestic procurement plans. Both utilize Elbit Systems’ UT30MK2 turrets, integrating a 30mm canon, countermeasures including Iron Fist active protection systems, optronic systems, and missile launchers on board.
These developments reflect a broader trend toward technology transfer models and geographic diversification of armored vehicle production, even in small-scale procurement plans. The emphasis on NATO-standard systems with local assembly capabilities addresses both supply chain resilience and domestic job creation imperatives.
European defense Original Equipment Manufacturers (OEMs) benefit from government policies favoring domestic production. Revenue projections for 2026-2027 should reflect higher-margin local assembly operations and sustained government support. While most nations insist on local production of the vehicles, the mission systems of AFVs, and the most complex part is centered at the turret, often delivered by specialist manufacturers such as Israeli companies Rafael and Elbit Systems, German Rheinmetall, Italian Leonardo, and Turkish Aselsan.
Such a move has been recently taken by Morocco, which opted to locally produce The Indian WhAP 8×8 IFVs developed by Tata Advanced Systems Ltd (TASL) and match Elbit Systems’ Elbit turrets, including the UT30MK2 30mm and possibly the Crossbow 120mm mortar.
This choice reflects the expanding defense relationship between Israel and Arab states following the Abraham Accords framework. The contract, covering approximately 150 Wheeled Armoured Platform vehicles manufactured by India’s Tata Advanced Systems, builds upon Elbit’s previous $370 million ATMOS howitzer deal with Morocco. This trend highlights how Israeli defense firms are successfully competing against traditional European suppliers such as Nexter and Thales in North African markets.
