Mercedes-Benz is partnering with Munich start-up Tytan Technologies to develop a mobile drone defence system, marking the automaker's latest move into Europe's booming military sector. The Stuttgart-based company will supply vehicles for the Drone Defender system, which targets small FPV drones threatening critical infrastructure.

The system uses Mercedes' Sprinter van and military G-Class SUV as chassis, fitted with Tytan interceptor drones that destroy UAVs via collision or warhead. This positions Mercedes to capitalize on Germany's €750bn military spending push through 2030, as traditional automakers pivot amid falling profits from Chinese competition.

Unlike expensive platforms like Rheinmetall's €10mn Skyranger, the Mercedes-Tytan solution aims for mass production at lower cost. Tytan, founded in 2023, previously secured a €20mn Bundeswehr contract for prototype development and plans Defender production by year-end targeting thousands of units annually.

Mercedes follows Volkswagen's defence collaborations, including talks with Israel's Rafael. CEO Ola Källenius confirmed defence expansion while calling it a niche activity, building on the company's existing Wolf military vehicle production in Austria following its 2021 spin-off of Daimler Truck.