Mercedes-Benz expands into drone defence as Europe boosts military spending

Mercedes-Benz is moving further into Europe’s fast-growing defence sector through a partnership with Munich-based start-up Tytan Technologies to develop mobile systems designed to counter small hostile drones around critical infrastructure.

Under the planned collaboration, the companies will produce a “Drone Defender” platform built on Mercedes vehicles, including the Sprinter van and the G-Class SUV already used in military variants. The system will carry sensors and interceptor drones intended to detect and neutralise suspicious unmanned aerial vehicles, including so-called first-person view (FPV) drones that have become a major concern for European security agencies.

The move comes amid reports of increased drone activity near airports and military sites across Europe since Russia’s invasion of Ukraine in 2022. Intelligence officials have linked some incidents to hostile surveillance and disruption tactics.

Tytan, founded in 2023, has already secured a contract worth around €20mn from Germany’s armed forces to develop a prototype base protection system. The new platform is expected to be significantly cheaper than existing high-end solutions such as Rheinmetall’s Skyranger, which can cost more than €10mn per unit.

Production of the new system is targeted to begin by the end of this year, with ambitions to scale output into the thousands annually. The initiative reflects a broader shift among German carmakers, which are facing pressure from slowing automotive demand and rising competition from China, and are increasingly exploring defence-related manufacturing opportunities.

The trend is also gaining traction across the industry. Reports suggest Volkswagen has explored cooperation with Israeli defence firm Rafael, while defence group KNDS has examined potential use of automotive production capacity in Germany.

Mercedes itself already produces military versions of the G-Class in Austria and has indicated that defence activity could expand further, albeit remaining a niche part of its overall business.