Ukrainian innovation company Vyriy Drone, operating in the Military Tech sector, has unveiled a fully localized FPV drone. Representatives of the company shared this news on their official Instagram page. They highlighted that all key components of the drone are of Ukrainian production. These include the flight controller, ESC, ELRS receiver and antenna, initiation board, thermal camera, video transmitter and antenna, as well as the motors, propellers, and frame. Notably, some of these components are proprietary designs by the company, while others are produced in collaboration with other domestic manufacturers, such as Odd System, Dec1, Maarten Baert, Combat Birds of Ukraine, and IDFan.
As Vyriy Drone emphasizes, focusing on in-house developments and collaborating with Ukrainian manufacturers are strategic priorities for the company. China has been introducing and gradually tightening restrictions on component supplies, which poses a challenge for the entire industry. However, in the company’s mass-produced products, over 70% of the components are already of Ukrainian origin, and the manufacturer is working to increase this proportion further.
Vyriy Drone notes that, in addition to the economic benefits, localization offers another significant advantage— the ability to provide quick feedback, which allows for incorporating customer requests and implementing in-house developments. Moreover, the Ukrainian market is rapidly adapting to current realities, continues to grow, and has significant potential for further expansion.
“We are pleased that most drone manufacturers are transitioning to localized products,” say the company’s representatives. “Some components, like frames and propellers, were quickly localized by Ukrainian companies. These are parts without electronics. As for electronics— the production of stacks and ELRS— Ukrainian manufacturers are also capable of covering the market, but this opportunity is currently hindered by the VAT taxation system.”
Currently, Ukraine has a preferential taxation system for the import of drone components—without VAT. However, if a Ukrainian manufacturer imports parts like transistors, resistors, chips, etc., to assemble components in Ukraine, these goods are imported with VAT. As a result, the price of components like flight controllers includes VAT, making the final product more expensive. For companies, it’s easier to order ready-made components from other countries and import them as finished products without VAT, which reduces the price of the product by 20% for the country and the Armed Forces.
According to manufacturers, resolving the VAT taxation issue will allow Ukrainian producers to make fully localized products competitive in the pricing segment.
Source: Vyriy Drone
