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European land defence giant KNDS has inaugurated a new production line for its BOXER armoured vehicle in Munich and forged a manufacturing partnership with automotive supplier DRÄXLMAIER, targeting a sixfold increase in output by 2030.
Munich, Germany — KNDS has launched a dedicated production line for BOXER drive modules at its Munich/Allach facility and signed a strategic partnership with Bavarian automotive manufacturer the DRÄXLMAIER Group to scale mission module production. The announcements mark a major industrial push to meet surging European defence demand, according to KNDS.
New Line, New Capacity
The Munich/Allach site will now produce ten BOXER drive modules per month. Additional facilities across KNDS and its partner network will run comparable operations, collectively pushing total BOXER output to a significantly higher level. The overarching target is to produce six times as many BOXER systems annually by 2030 compared to current rates, primarily to meet German Army requirements.
KNDS Deutschland CEO Florian Hohenwarter unveiled the new series production concept at an event attended by Bavarian Minister-President Dr. Markus Söder. “Many armed forces and governments clearly expect us to increase production to boost Europe’s defence capabilities,” Hohenwarter said. Bavaria plays a central role in that strategy, with KNDS committing to continued investment and expansion across its Bavarian sites.
Civilian Sector Joins the Effort
Central to the scaling strategy is a partnership with DRÄXLMAIER, a Vilsbiburg-based tier-one automotive supplier with over six decades of manufacturing expertise. Under a Memorandum of Understanding signed during Söder’s visit, DRÄXLMAIER will produce a significant number of BOXER mission modules at its facility in Landau an der Isar.
The partnership deliberately draws on non-defence industrial capacity, a model increasingly favoured as European defence primes face pressure to scale rapidly without proportional growth in their own workforces and facilities.
“With over 65 years of experience in the development, validation, and industrialisation of series production products, we are contributing our technological expertise to manufacturing complex subsystems,” said DRÄXLMAIER CEO Jan Reblin. He described the agreement as a milestone uniting two high-performing Bavarian companies in a stable industrial collaboration.
Bavaria’s Defence Ambitions
Minister-President Söder used the occasion to highlight Bavaria’s growing importance to Germany’s defence industrial base. He noted that one-third of all German defence companies operate in the Free State, employing 50,000 people and generating €9.5 billion in economic value. The state is also expanding universities focused on defence technology and has enacted its own Armed Forces Act and Armaments Act to facilitate sector growth.
“We need a strong defence industry with our own technologies from Germany to be able to defend ourselves,” Söder said. “Ideally, these devices should never be used, but they must deter others from attacking us.”
About the BOXER
The BOXER is a modular, heavily protected 8×8 wheeled platform developed by ARTEC, a joint venture of KNDS Deutschland, Rheinmetall Landsysteme, and Rheinmetall Defence Nederland. Its drive module and interchangeable mission modules enable rapid role reconfiguration. Variants range from armoured personnel carriers and ambulances to the world’s most advanced wheeled howitzers.
More than 2,000 BOXER systems are in service across Germany, the Netherlands, Lithuania, the United Kingdom, Australia, Qatar, and Ukraine. That customer base underlines both the platform’s operational pedigree and the scale of production commitments now facing KNDS.
The expansion reflects a broader European Zeitenwende, the strategic shift toward rearmament triggered by Russia’s 2022 invasion of Ukraine, and positions KNDS at the centre of the continent’s industrial response.
Source: KNDS Press Release
