Renault plans to cap defence revenue at 5% of sales as it pilots drone production, signalling cautious entry into military contracts. The carmaker, whose state holds a large stake, has been fielding partnership talks after Paris urged firms to boost drone output. Keeping the ceiling low helps it stay within ESG lending limits.

Renault sold 2.3 million cars in 2025, lifting revenue 3% to €58 bn. A January agreement with defence group Turgis Gaillard will see drones assembled at the Le Mans plant, targeting a prototype by year‑end and a line capable of 600 units monthly. Yet the French DGA warned it will not place large orders immediately, preferring capacity‑maintaining payments.

CEO François Provost, promoted after Luca de Meo’s departure, has also explored land‑drone projects with Belgian John Cockerill and Arquus, though talks may stall. By restricting defence earnings to 5 per cent, Renault preserves its consumer‑car identity while satisfying the state’s “citizen‑company” expectations. The firm will monitor capacity constraints before expanding further.

The modest cap signals Renault will not chase large defence contracts that could tie up production lines. Investors see the move as risk mitigation, keeping the balance sheet aligned with its core automotive business. Renault’s next earnings will reveal whether the drone line adds meaningful margin without eroding car margins.