Named after Fahrettin Altay, who commanded the 5th Cavalry Corps during the Turkish War of Independence, the Altay Tank is one of Turkey's most significant projects in the defense industry. The Altay Main Battle Tank Production Program, developed with a vision to meet the combat needs of both today and the future, had its foundations laid on November 9, 2018, with a serial production agreement signed between the Presidency of Defense Industries and BMC. BMC, assuming the role of the main contractor in the program, will produce and deliver 250 ALTAY Main Battle Tanks to the Turkish Armed Forces under the contract. Nearly 200 subcontractors, the majority of which are domestic, are involved in the project. As of April 23, 2023, two Altay Tanks have been produced within the scope of the program and delivered to the Turkish Armed Forces for testing.

The vehicle's Volkan-III tank fire control system and tank command control communication information system will be designed and produced by Aselsan. The 120mm 55-caliber main weapon system, capable of firing all types of ammunition compliant with STANAG 4385, with a range of 3 km, will be produced by the Machinery and Chemical Industry Corporation (MKE) through technology transfer from the South Korean company Hyundai Rotem. The modular armor package will be produced by Roketsan.

Otokar has received incentives totaling $500 million for the design and development of four prototypes of the main battle tank Altay. The main weapon of the Altay Main Battle Tank has been determined to be a 120mm 55-caliber smoothbore gun made of special steel, with a range of 3 km, capable of firing all kinds of ammunition compliant with STANAG 4385, and with a chrome-plated bore. The total barrel length of the gun is 6.6 meters, and it weighs 1324 kilograms. With the start of the tank's production process, it will enter the serial production phase. Aselsan will produce the tank fire control system, tank command control combat information system, and the electric weapon turret drive system. The tank is also planned to be equipped with remotely controlled weapon systems, including 7.62mm and 12.7mm machine guns, as well as a 40mm grenade launcher.