Automobile corporations are seeking new growth engines in the defense industry. While the global auto market is struggling due to low growth and competition from Chinese companies touting value for money, defense is attracting funds amid successive wars.
On the 15th (local time), Renault unveiled a prototype of the military vehicle "4Troop (Troop)" at Eurosatory 2026, Europe's largest defense exhibition, held in Paris. Based on the Rafale, a midsize sport utility vehicle (SUV), the model was co-developed with French defense corporations Thales and is expected to go into mass production as early as early next year.
Camouflaged in earth tones, the vehicle is equipped with a hybrid powertrain that allows it to move without engine noise. Inside, it carries Thales's combat digital platform technology. It becomes a "mobile command center" that operates unmanned aerial vehicles and unmanned ground vehicles and performs unit support and reconnaissance functions.
A Renault official said, "This solution can be compatible with several Renault vehicles, including SUVs and multipurpose vehicles." Renault also unveiled the 4Troop built on the light commercial vehicle (LCV) Master on its official website.
Renault is not the only automobile corporation entering defense. Mercedes-Benz signed a memorandum of understanding (MOU) on the 12th with German startup Titan Technology, which develops drone defense technology. The G-Class off-road vehicle and the large Sprinter van from Benz are converted for military use and employed as mobile platforms for Titan Technology's reconnaissance drones and interceptor drones.
Volkswagen also displayed military vehicles made from the Amarok pickup truck and the Crafter van at an exhibition in Germany earlier this month. Volkswagen is already pushing to produce trucks and launchers equipped with the Iron Dome missile air defense system with Israeli defense corporations Rafael.
In addition, U.S. company General Motors (GM) signed an MOU with Lockheed Martin on the 16th for cooperation on military supplies, and Peugeot under Stellantis displayed the Landtrek Protected, a military version of the Landtrek pickup, at this Eurosatory.
Automobile corporations are recently pouring energy into defense because strong growth is expected to continue amid successive wars.
Following the Russia-Ukraine war, the outbreak of the U.S.-Iran war has stirred a rearmament trend across Europe and the Middle East. The European Union (EU) has allocated 800 billion euros (about 1,404 trillion won) for defense from this year through 2030, and countries are competitively purchasing new weapons.
By contrast, the auto industry is saturated with competition due to the onslaught of Chinese cars, and the profitability of major corporations has fallen sharply.
Some automobile corporations are changing production plans as they expand defense investment. Automotive News, a U.S. auto outlet, reported, "If a defense contract is concluded, the operating period of Benz's Sprinter plant in Germany will be extended." Benz had said it would gradually move the Sprinter production line to Poland to cut costs and fully end production in Germany in 2029.
For the defense industry, outsourcing manufacturing to automobile corporations is advantageous because it can boost production capacity. Several global defense companies are seeing orders surge but are struggling with long delivery times due to insufficient capacity. Renault Chief Executive Officer (CEO) François Provost said, "We can do it not in 30 years but within 12 months," adding, "That is the strength of the automobile industry."
In Korea, Kia is expanding its special-purpose vehicle business. At this Eurosatory, Kia showcased a lineup of special-purpose vehicles ranging from light to heavy. A variety of models were displayed, from the small tactical vehicle (KLTV), which can drive in extreme conditions such as minus 32 degrees and streams 760 mm deep, to large standard vehicles that transport large volumes of cargo.
A Kia official said, "We will continue to develop customized models for military customers and present a vision for future military mobility."