German armor companies depend on higher end, higher cost systems sales to mainly EU/NATO market. Germans would need to move a alternative country to curb production costs and local export restrictions.
We offer wider range of armored vehicles, varying in classification, quality, cost. Internal demand along with lower costs + export restrictions gives upper hand.
How many Altay customers would there be? It is a modern MBT with high price. Limited amount of countries can afford it that is in our potential customer base. Korea still did not scored MBT export despite having access far more options.
Our majority of export vehicles have alternative powerpacks in case of wider German embargo. I don't think embargoing MBT powerpack does that much for protecting their armor industry. Not to forget, it encouraged to develop our own powerpacks.
I think it is just German government being German government.