French automaker Renault is applying its mass production experience to drone manufacturing. Through a partnership with French defense electronics company Thales, it plans to increase the monthly production capacity of the "Toutatis" drone to 1,000 units, a hundredfold increase over current output, with production expected to begin in 2027.

This move represents the latest example of the struggling automotive industry seeking collaboration with the defense sector, with similar attempts being made by General Motors, Volkswagen, as well as suppliers such as Continental, Faurecia, and Valeo.

After disassembling drones from multiple manufacturers, Renault engineers discovered that their designs and processes are entirely different from the automotive industry, including large numbers of small screws or high-specification materials. To achieve larger-scale, lower-cost production driven by rearmament efforts in France and other countries, these designs must be simplified.

Jean-Philippe Billaud, head of industrial excellence at Renault, said: "We thought, is it a good idea to consider replacing carbon fiber components with plastic? Otherwise, the process is long and complex during mass production, whereas with plastic you can produce molds faster and output components." Renault and Thales jointly reverse-engineered the design to "not only share costs, but also share complexity."

Renault CEO Francois Provost said the improved model has 20% fewer parts and 40% fewer fasteners such as screws, but pricing has not yet been disclosed. Cecilia Aguero, head of drone systems at Thales, said that even simplifying the "quite messy interior" wiring of the drone represents a major breakthrough.

In another project codenamed "Chorus" in partnership with Turgis Gaillard, targeting large drones comparable to long-range missiles, the French defense procurement agency said each unit will cost 100,000 euros. Industry insiders say such drones typically cost 1 million euros or more. The two companies plan to expand monthly production capacity to 600 units.

The drone industry is becoming increasingly competitive. Conflicts in Ukraine and Iran have highlighted the widespread use of drones in warfare, prompting manufacturers to accelerate design updates and produce in more competitive ways. Oleksandr Yakovenko, founder of Ukraine's TAF Industries, said the company has increased reconnaissance drone production capacity eightfold since 2023 and currently produces 80,000 units per month. He added that the company also simplifies designs through continuous frontline feedback, "eliminating unnecessary features."

European governments also want to ensure they can rapidly produce drones at scale. Unlike traditional ammunition, given that the Ukraine war has shown the need for frequent software and technology upgrades to avoid obsolescence, governments do not want to stockpile large quantities of drones.

Remi Trioulaire, head of European operations at German family-owned company Schaeffler, which produces bearings and other components for automakers, said the company signed an agreement in June with French army supplier and drone manufacturer Delair to help it "ramp up manufacturing capacity very quickly and rapidly." Schaeffler can provide "high-precision components and systems" for mass production and ultimately assist in designing specialized machinery. The two companies hope to increase daily production of drones and interceptors from the current 10 units to 100 units by November.

Trioulaire said: "We don't want to reinvent the wheel. We just want to reuse what we know and what we are good at... and use that to enter a new field." "You need a resilient supply chain. You need good products and a good manufacturing base. From that perspective, all these challenges are ones we have been facing in the automotive industry for decades."

Auto suppliers and manufacturers remain cautious about over-expanding in an industry where large-scale output demand has only just begun to be confirmed and production volumes remain low compared to their core businesses. Encouraged by French government shareholders, Renault said it will only undertake projects that are justified by the scale they can bring, and hopes to keep defense revenue below a certain threshold.

Renault faces its own challenges in its core automotive business, seeking to cut electric vehicle production costs by 40% and reduce development time from three to four years to two years to keep up with Chinese competitors. Some Renault unions, particularly the left-wing CGT, oppose the shift toward defense business.

But Patrick Pajot, head of the French defense procurement agency, said the "Chorus" drone project between Renault and Turgis Gaillard has already generated interest from Ukraine, and the related designs and methods can be exported under license. Pajot said: "You would struggle to find many (drones with that specification and cost) on the market, developed by an automaker, using automotive industry component costs."