Founded in 1948 in Vogošca, near Sarajevo, Yugoslavia.
Production began in 1957 when NSU Motorenwerke supplied machines in kit form to circumvent the import restrictions imposed by the Tito regime.
In 1961 they obtained tooling to begin manufacture of the Prima V and Maxima scooters for the local market. By 1963 they were producing NSU Maxi motorcycles and Prima scooters, and later NSU Prinz small automobiles.