French automotive manufacturer Renault Group and defense technology firm Thales have signed a strategic partnership to jointly develop and industrialize the large-scale production of the TOUTATIS loitering munition. Announced at the Eurosatory defense exhibition outside Paris, the collaboration aims to establish a sovereign, agile and competitive drone manufacturing industry in France capable of meeting the operational demands of a wartime economy.
The agreement combines Thales’ advanced defense technologies with Renault Group’s high-volume industrial engineering and manufacturing expertise. Under the partnership, mass production of the remotely operated, short-range loitering munition could begin as early as 2027. The companies aim to reach an initial production capacity of 1,000 units per month within the first year, significantly expanding France’s domestic defense manufacturing capabilities.
According to the companies, European nations are increasing defense spending and scaling up production infrastructure in response to shifting geopolitical dynamics, including Russia’s invasion of Ukraine and changes in United States foreign policy. This environment has prompted defense manufacturers to leverage excess capacity in the automotive sector to accelerate production timelines and improve cost efficiency.
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The initiative follows a request made in February by the French Ministry of the Armed Forces, which approached Renault Group to help strengthen the country’s defense industrial base.
“This new strategic partnership between Thales and Renault Group brings together the strengths of two French champions in support of France’s sovereign drone industry,” said François Provost, CEO, Renault Group. “Renault Group contributes its industrial expertise to the TOUTATIS project, along with the highest standards of automotive manufacturing, to design, industrialize and produce at scale within shortened timelines and at optimized costs. I am proud of the work accomplished by our teams. It makes a tangible contribution to the initiatives undertaken with the French Ministry of the Armed Forces and strengthens both French and European defense capabilities.”
Patrice Caine, Chairman and Chief Executive Officer, Thales, highlighted the growing importance of industrial scale in modern defense operations. “This partnership with Renault Group marks an important milestone in strengthening sovereign, large-scale, world-class capabilities in the field of drones,” Caine said. “By combining Thales’ excellence in advanced technologies with Renault Group’s industrial strength, this partnership addresses the needs of the armed forces while meeting the requirements of a wartime economy.”
The TOUTATIS loitering munition is a short-range, remotely operated aerial system designed for high-intensity combat environments. It functions as a loitering, or “hovering,” munition, remaining airborne over a designated target area before executing a strike. The system features a mission-configurable warhead capable of neutralizing targets such as armored vehicles.
The platform is designed for operational flexibility and can be deployed by dismounted infantry units or launched from standard military platforms, including land combat vehicles, aircraft and naval vessels. Its architecture is engineered to resist electromagnetic jamming, supports scalable drone swarm operations, and maintains a human operator within the decision-making loop.
In addition to the drone partnership, Renault Group and Thales used the Eurosatory exhibition to unveil the “4 TROOP,” an innovative tactical vehicle designed for land forces. The vehicle represents the first collaborative defense project between the two companies and integrates unmanned aerial systems, advanced sensor arrays, secure hybrid communications and artificial intelligence-powered decision-support tools to enhance battlefield awareness and operational effectiveness.
The TOUTATIS agreement marks Renault Group’s second major expansion into aerial drone manufacturing. The automaker is also participating in the Chorus program alongside drone manufacturer Turgis Gaillard to develop a separate long-range drone platform. A prototype is expected by the end of the year, followed by plans to establish a monthly production capacity of 600 units at Renault’s manufacturing plant in Le Mans. Renault Group is also collaborating with Belgian company John Cockerill on the development of a specialized ground drone.
Despite its expanding defense portfolio, Renault Group emphasized that automotive manufacturing remains its core business. In 2025, the company reported global sales of 2.337 million vehicles across its Renault, Dacia and Alpine brands.
Thales, which employs more than 85,000 people across 65 countries, reported sales of €22.1 billion (US$25.61 billion) in 2025 and invested €4.5 billion (US$5.22 billion) in research and development during the year.