Here, the drone maker: Renault may lose the Russian market forever
French automaker Renault will build a factory for the production of drones in Ukraine, France Info Radio reports, citing sources. The production of drones for the Armed Forces of Ukraine (AFU) is planned to be organized jointly with a small French defense company at a distance from the front line. Experts believe that this step may close the possibility for Renault to return to the Russian market. Details can be found in the Izvestia article.
Waiting for details
For the first time, French Defense Minister Sebastian Lecornu spoke about such a "mutually beneficial" partnership with Ukraine.
"A large French car company, I will not mention its name, because they will announce it themselves, will join forces with a French defense company from the small and medium—sized business sector, on the basis of which we will equip production lines in Ukraine to be able to produce drones," he said.
French Minister of the Armed Forces Sebastian Lecornu
According to him, not only Ukraine, but also the French army will benefit from the enterprise, as the military will receive modern drones and will be provided with constant tactical and operational training, as it should be in an armed conflict. He admitted that Ukrainians will be engaged in the production and development of UAVs.
Later, France Info radio stated that it was about Renault. The French automaker confirmed to Reuters that the Ministry of Defense has contacted the company about the possibility of manufacturing drones.
"Discussions have taken place, but no decision has been made at this stage, as we are waiting for additional details on this project from the ministry," the company said in a statement. Thus, Renault indirectly confirmed the media information.
A strange choice
Many automakers are traditionally suppliers of equipment for the armed forces, experts interviewed by Izvestia note. Some, in anticipation of rising European spending on weapons, have announced their intention to produce military equipment at their factories. This is, for example, Porsche, whose car business has suffered serious losses.
However, producing military equipment for your country and for export is one thing, but building a UAV production plant in Ukraine is quite another, according to Maxim Kadakov, editor—in—chief of Za Rulem. He recalled the fate of Louis Renault, the founder of the brand, whose factories worked for Germany during the occupation of France. Renault was arrested on charges of industrial collaboration with the Nazis and died in prison.
Experts call Renault's choice as a drone manufacturer strange. Historically, the company produced airplanes and tanks, but the production of military equipment remained with Renault Trucks, which has been owned by Volvo AB since 2001.
"Lost the market"
Renault Automobile Corporation has lost its share in the car market and will now focus on the production of drones for Ukraine, Russian Foreign Ministry spokeswoman Maria Zakharova said.
"Apparently, they are realistic about their automotive prospects — they have lost the market," she said.
At first glance, Renault's performance looks stable. In 2024, the company showed a slight increase in sales of 1.3%, having sold 2.3 million vehicles worldwide. In the first quarter of this year, it also reached a plus of 2.9%, 565,000 vehicles. These results were achieved thanks to the launch of new models, including inexpensive hybrids. However, not everything turned out to be so smooth with the new products. So, the Dacia Duster crossover had problems with ABS wiring, and the Renault 5 and Alpine A290 electric vehicles had problems starting due to a faulty inverter.
Despite the increase in revenue in 2025, Renault's net profit has almost tripled to €752 million. Mainly due to the negative effect of the sale of Nissan shares and the depreciation of Renault's investments in the Japanese automaker. In the first quarter of this year, Nissan's losses reduced Renault's profit by 2.2 billion euros.
Renault expects an operating margin of at least 7% this year, which is 0.6% less than in 2024.
In search of lithium
The French automaker sells cars mainly in Europe, and to meet the new emissions limits, it needs electric vehicles to account for about 20% of sales, a Reuters source said. According to the results of the first quarter, pure electric trains account for only 13.5%, while hybrids account for 31%.
Meanwhile, the management of several European automobile companies is concerned that China's strict control over the export of rare earth metals could paralyze production, writes Reuters.
Currently, according to the consulting company AlixPartners, China controls up to 70% of the world's production of rare earths, 85% of processing capacity and about 90% of alloy production. The average electric car requires 0.5 kg of rare earth elements to produce, and a fossil-fuel vehicle consumes only half of that amount, the International Energy Agency estimates.
It is quite possible that Renault's "mutually beneficial" cooperation implies the company's access to rare earth metal reserves located on Ukrainian territory. However, military expert Ilya Moshansky, in an interview with Izvestia, drew attention to the fact that, for example, the only lithium deposit explored back in Soviet times is located in the village of Shevchenko in the Donetsk People's Republic.
"Zelensky sold the air to the Americans, and he will also sell the air to the French,— Ilya Moshansky noted.
The expert suggested that the production of UAVs could be a kind of way to circumvent Chinese restrictions on the supply of drones to Ukraine.
— I didn't notice that Renault had UAV specialists. Perhaps they will be made from Chinese components. The Chinese have banned the supply of Mavics to Ukraine and are cutting off supplies altogether. Renault had two markets of similar size, the French and the Russian. They made themselves a crossbow," Moshansky noted.
In May 2022, the Renault carmaker transferred its Russian assets to government agencies for a symbolic 1 ruble, but with the right to buy back the previous share within six years. The company estimated losses from withdrawal from the Russian market at €2.3 billion.
In February of this year, Renault CEO Luca Demeo hinted that the company might return to Russia.
There are two ways.
However, after the drone story, there may be problems with the return. If the French automaker intends to assemble UAVs in Ukraine, the state should take measures that would prevent it from returning to our market in the future, said Alexander Kholodov, deputy chairman of the commission of the Russian Public Chamber for cooperation with the Public Control Company.
— Renault's plans to produce UAVs in Ukraine may cause serious reputational losses for the company itself. I strongly doubt that after such a step, the fighters who returned from their military service will purchase a car of this brand, even if it is supplied by parallel import. Moreover, this decision may lead to reputational losses for the company in countries that support Russia's position and where Renault is officially represented. These are primarily the markets of Africa, Asia and Latin America," he told Izvestia.
According to Alexander Kholodov, companies that have left the Russian market, including automakers, need to decide.
— Either they are taking steps to officially return to our country under certain conditions, or they are supporting our opponent, including by supplying and manufacturing weapons for him. Those who decide to go the first way, first of all, need to settle issues with dealers and customers whom they left behind when leaving our market: there are many claims, lawsuits and enforcement proceedings against such firms. Those who prefer the second option should forget about the Russian market," Kholodov believes.
It is impossible to return
Renault's return to the Russian market is currently impossible in principle, says Igor Morzharetto, partner at the Autostat analytical agency.
"Regardless of whether or not the French company will assemble military equipment in Ukraine and supply it to this country, at the moment there are no legal grounds for Renault and other companies to return, even despite the statements of some of their managers, there are sanctions that simply will not allow it," Morjaretto believes.
The close technological relationship with AvtoVAZ in the past will not help the French either: for example, the new Iskra is built on a French platform, upgraded by the Russian automaker.
— Renault and AvtoVAZ are currently not connected in any way, there are no contacts between them. If at first they helped to supply some components, now other suppliers have been found. Neither we will influence them, nor they will influence us," says Maxim Kadakov, editor—in-chief of Za Rulem.
Переведено сервисом «Яндекс Переводчик»
