BAE Anticipates Record-Breaking CV90 Combat Vehicle Order in 2026: Major Defense Boost Expected!

LONDON — BAE Systems is anticipating a substantial order for numerous CV90 tracked combat vehicles, expected from a consortium of up to six European countries by the second quarter of 2026, says Peter Nygren, the business development director at BAE Systems Hägglunds, based in Sweden.

Nygren, speaking to Defense News after a presentation at the DSEI UK exhibition, mentioned that the contract might be finalized by June next year. This upcoming order promises to significantly exceed the volume of previous large-scale procurements, with the firm having already supplied around 1,300 CV90s and another 600 on order.

In June, Finland, Sweden, Norway, Lithuania, Estonia, and the Netherlands collectively agreed to consider a joint acquisition of the CV90. The final decision on whether all six nations will partake in this collaborative order will depend on their agreement on standardization levels, as per Nygren’s insights.

According to Nygren, BAE Systems Hägglunds is expecting to receive a request for quotation from the participating countries “in a few weeks,” with the three Scandinavian countries and Lithuania having already aligned on the vehicle specifications. He emphasized that this potential order would be the largest ever in the history of BAE Systems Hägglunds.

“The exact nations that will finally participate are still undecided,” Nygren commented. “I am aware of their initial numbers and their aspirations, but it’s clear that the figures are substantial.”

The price of a CV90 varies depending on the model, with recent transactions with Czechia, Denmark, and Sweden setting the average cost between $9.5 million to $13 million per unit.

The latest version, the MkIV, has a maximum gross vehicle weight of 38 metric tons, and is currently in service or on order in ten European countries.

Sweden has also provided CV90s to Ukraine, where the vehicles have been well-received for their enhanced survivability over older Soviet-era models. BAE states that the CV90 is designed to withstand shaped-charge warheads.

BAE Systems is making a significant investment of $300 million to increase the production capacity of the CV90, with nearly $200 million already utilized. The target is to boost the production rate from about 50 vehicles in 2020 to 250 vehicles per year by 2026, and exploring further expansion to possibly 350 vehicles annually in the following years, according to Nygren.

In an effort to enhance production efficiency, BAE Systems Hägglunds is diversifying its supply chain and has announced the addition of a third welding line at its Swedish manufacturing facility, expected to be operational by late 2026.

“The priority for our clients is the delivery time,” Nygren revealed during the briefing. “That is why we are focusing on scaling production based on existing configurations and aligning the specifications across the nations.”

As for potential new clients, Nygren noted, “There’s considerable interest, but currently our main focus is on fulfilling existing commitments before taking on new ones. We are committed to ensuring our production operations are fully functional and efficient.”

Nygren also mentioned that Brazil is being considered as a potential new market for the CV90, which might involve a technology transfer deal facilitating local production.