Renault is intensifying its focus on drone production as part of a broader strategy to diversify beyond its traditional automotive business. The French carmaker, encouraged by the French government, is leveraging its expertise in mass manufacturing to bring large-scale production techniques to the defense sector, where drone output has historically been limited and more specialized.
In a partnership with French defense electronics company Thales, Renault plans to produce its Toutatis loitering munitions drones at a rate 100 times higher than current levels, aiming for 1,000 units per month by 2027. The drones, designed to carry warheads capable of neutralizing armored vehicles or infantry targets, incorporate advanced countermeasure systems. Renault CEO François Provost explained that the two companies reengineered the drone’s design to reduce complexity and cut costs, resulting in a model with approximately 20% fewer parts and 40% fewer fastenings like screws. Thales’ director of drone systems, Cécilia Aguero, noted that simplifying the drone’s intricate wiring was a significant improvement.
Renault is also collaborating with Turgis Gaillard on a larger drone project known as “Chorus,” intended to rival long-range missiles. The French defense procurement agency estimates these drones could cost around €100,000 each, significantly less than the typical €1 million price point or higher seen in the sector. The companies plan to boost production capacity to 600 units monthly. This project has attracted interest from Ukraine, according to Patrick Pailloux, the head of France’s defense procurement agency, who also highlighted potential export opportunities under licensing agreements.
Renault and other automotive firms, including suppliers like Continental, Forvia, and Valeo, along with international carmakers such as General Motors and Volkswagen, are increasingly venturing into defense manufacturing. This shift aims to stabilize operations amid weakening consumer demand and industrial challenges in the automotive sector. Many of these companies are applying automotive manufacturing principles—such as streamlined supply chains, precision engineering, and scalable production—to the defense industry.
This trend is unfolding amid mounting global demand for drones, driven by ongoing conflicts in Ukraine and Iran, which have underscored the growing role of unmanned systems in modern warfare. Ukrainian manufacturer TAF Industries exemplifies this shift, having increased its monthly output of surveillance drones eightfold since 2023 to 80,000 units by simplifying designs and drawing on frontline feedback.
European governments have also emphasized the need for rapid drone production, preferring not to stockpile large quantities due to the fast pace of technological change. German component supplier Schaeffler has partnered with French drone maker Delair to scale up production, targeting 100 drones and interceptors per day by November, up from 10 currently.
Despite the opportunities, Renault remains cautious in its defense engagement, focusing on projects that align with its production capabilities and aiming to keep defense revenues modest. The company continues to face significant pressures in its core automotive operations, including the need to reduce electric vehicle production costs by 40% and shorten development cycles to remain competitive against Chinese manufacturers. Some labor groups at Renault, notably the left-wing CGT union, have expressed opposition to the company’s move into defense.
Nonetheless, Renault’s entry into the drone market marks a broader trend of automotive manufacturers applying their industrial strengths to meet growing defense demands, reflecting how the evolving geopolitical landscape is reshaping traditional sectors.