Renault and Thales Join Forces to Boost French Military Drone Production

French automaker Renault Group announced on Tuesday that it will partner with defense technology company Thales to manufacture military drones, marking a further expansion of its footprint in defense manufacturing.

Under the agreement, Renault will produce Thales's Toutatis loitering munitions at its factories, with a target monthly output of 1,000 units starting as early as next year, aimed primarily at overseas markets.

A Major Announcement at Eurosatory

The deal was formally unveiled at the Eurosatory defense exhibition near Paris, and represents the two groups' second defense cooperation agreement, following an earlier collaboration on military vehicles. Both parties said the partnership will significantly boost France's industrial capacity in this strategically important sector.

Loitering munitions — drones capable of hovering over a target area before striking — have played a critical role in the war in Ukraine.

Thales CEO Patrice Caine said: "We started from operational requirements and carefully studied real-world conditions in various theaters of conflict — particularly the eastern front, but not limited to it."

Rising European Defense Spending Creates Opening for Automakers

Russia's invasion of Ukraine, combined with a shift in U.S. foreign policy under President Donald Trump, has prompted European nations to sharply increase defense spending. This has encouraged defense contractors to tap idle capacity in the automotive sector to ramp up weapons production.

Renault indicated in February that it had been invited by the French Ministry of Defense to help strengthen the country's defense industrial base.

Scaled Production to Drive Down Costs Significantly

Renault CEO Francois Provost stated that the group's manufacturing expertise will help scale up drone production faster and at lower cost.

Thales currently produces approximately 100 Toutatis drones per year. Through the Renault partnership, production will shift from 3D printing to large-scale plastic injection molding, with the design adapted for higher-volume output. Provost noted that a 40% reduction in the number of parts and fasteners will further drive down unit costs.

When asked how the Toutatis compares in price to competing products — such as the Damocles developed by KNDS and Delair, or MBDA's Akeron RCX 50 — Caine described the Toutatis as "highly competitive."

Both parties also noted that France does not currently have concrete plans for large-scale domestic procurement of the drone, with demand from other markets being more pressing at this stage.

Renault's Broader Defense Diversification Strategy

This short-range drone initiative is part of Renault's broader defense transformation. The automaker is also working with drone manufacturer Turgis Gaillard on the "Chorus" program to co-develop a long-range drone variant. The first proof-of-concept aircraft is expected to debut later this year, after which mass production at 600 units per month will begin at Renault's Le Mans factory.

Renault emphasized that automotive manufacturing remains its core business, but noted it is also collaborating with Belgian group John Cockerill on ground unmanned vehicles. John Cockerill Defense acquired French military vehicle manufacturer Arquus from Swedish truck maker Volvo in 2024.

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