Daimler Buses Expands Production Capacity Through Strategic Partnership with Otokar
Daimler Buses has announced a major step to expand its global production capacity by signing a cooperation agreement with Turkish manufacturer Otokar Otomotiv ve Savunma Sanayi A.Ş.. Beginning in September 2026, Otokar will manufacture the conventionally powered Mercedes-Benz Conecto city bus at its production facility in Sakarya, Türkiye.
The partnership comes as Daimler Buses faces sustained high demand for its Mercedes-Benz and Setra brand buses across global markets. Until now, the Conecto model had been produced exclusively at Daimler Buses’ Hoşdere plant in Türkiye. Known for its low operating costs and efficiency, the Conecto is a cornerstone in Daimler’s city bus lineup, particularly popular among public transit operators seeking economical solutions.
The agreement was officially signed in Sakarya by Till Oberwörder, CEO of Daimler Buses, Süer Ismail Sülün, President & CEO of Mercedes-Benz Türk A.Ş., and Aykut Özüner, CEO of Otokar.
Leaders Highlight the Value of the Partnership
Till Oberwörder emphasized the significance of the cooperation:
“The ongoing strong demand for our products shows that buses are becoming increasingly important to society and that we are offering our customers the right solutions. We are the clear market leader in Europe and Latin America – and this cooperation allows us to further strengthen our position by increasing overall vehicle production. Expanding our production capacity has a positive impact on our profitability. Otokar is a highly respected and reliable partner in our industry with strong manufacturing expertise. Working closely together, we will ensure the high-quality standards our customers expect from Daimler Buses. We look forward to this partnership.”
Echoing this sentiment, Süer Sülün stressed the importance of the Hoşdere facility within Daimler’s global network:
“We are delighted by the strong demand for our buses and the resulting very positive order situation at our Hoşdere plant. The site is a key part of Daimler Buses’ production network and continues to manufacture buses across all segments. We at Mercedes-Benz Türk welcome the partnership with Otokar and are very much looking forward to supporting this collaboration as a strong and reliable partner.”
From Otokar’s perspective, CEO Aykut Özüner described the cooperation as a milestone in strengthening the company’s role as a leading European bus manufacturer:
“We have extensive experience in bus manufacturing, both as a manufacturer and as a contract producer, and have been successfully building high-quality buses for over 60 years. The partnership with Daimler Buses is a significant step for us to further expand our production, ensure the most effective use of our capacity, and strengthen our position as one of the top five bus manufacturers in Europe. Our goal with this agreement is to establish a sustainable partnership with Daimler Buses.”
Daimler Buses’ Support for Otokar
As part of the agreement, Daimler Buses will provide Otokar with major vehicle components and specialized production equipment to ensure consistency with Daimler’s established quality benchmarks. A dedicated Daimler Buses team will also be stationed at the Sakarya facility to oversee operations and provide direct support.
Furthermore, Daimler Buses will conduct training programs for Otokar employees, reinforcing standards in assembly, quality control, and production management. This collaborative approach aims to guarantee that the Conecto models manufactured at Otokar meet the same quality levels as those produced at Daimler’s own facilities.
About the Mercedes-Benz Conecto
The Mercedes-Benz Conecto is a low-floor city bus designed to maximize passenger capacity while ensuring smooth accessibility. It is available in two main variants: a three-door solo bus and a four-door articulated version. Both configurations are optimized for urban mass transit, with features such as level boarding and spacious interiors that make them suitable for high-frequency city routes.
Daimler Buses’ Strong Performance
The decision to expand production also reflects Daimler Buses’ strong recent performance. In 2024, the company sold 26,600 units, maintaining its leadership position in Europe and Latin America. This represented an increase from 26,200 units in 2023. In the first half of 2025, Daimler Buses boosted sales by eight percent, reaching around 13,200 units compared to 12,300 in the same period of 2024. The company also improved its return on sales to 9.7 percent, up from 7.2 percent a year earlier.
About Otokar
Founded in 1963, Otokar (BIST: OTKAR) is part of Türkiye’s Koç Group and has become one of the top five bus manufacturers in Europe. With more than 60 years of bus-building experience, the company produces a wide range of vehicles, from city and intercity buses to light trucks and pickups. Headquartered in Türkiye, Otokar operates internationally with subsidiaries in France, Italy, Romania, the UAE, and Kazakhstan, and maintains a branch in Germany. Its vehicles are exported to over 50 countries.
For 16 consecutive years, Otokar has been the most preferred bus brand in Türkiye’s public and tourism transportation markets. The company also invests in advanced technologies, including alternative-fuel and autonomous vehicles.
About Mercedes-Benz Türk
Operating in Türkiye for 58 years, Mercedes-Benz Türk A.Ş. plays a vital role in Daimler’s bus and truck network. Since its inception, it has produced more than 113,000 buses and 400,000 trucks. Its flagship Hoşdere plant, opened in 1995, remains Daimler Buses’ largest bus production site worldwide, covering 415,000 square meters and manufacturing a broad range of models for global markets.
About Daimler Buses
Daimler Buses, a segment of Daimler Truck, is one of the world’s leading manufacturers of buses and coaches, responsible for global activities under brands such as Mercedes-Benz, Setra, OMNIplus, and BusStore. Its portfolio spans coaches, intercity and city buses, special-purpose vehicles, and bus chassis.
The company’s production network includes facilities in Germany (Mannheim and Neu-Ulm), France, Spain, Türkiye, Brazil, and Mexico, as well as operations in North America. Mannheim serves as the competence center for battery-electric city buses, while Neu-Ulm is the global hub for coaches of all drive types.
Through this new collaboration with Otokar, Daimler Buses aims not only to increase its output but also to reinforce its global leadership in the bus market by meeting growing demand with flexibility, reliability, and uncompromising quality.
