The new electric Twingo
Pressured by Chinese hyper-competitiveness, brands like Renault are reshaping development, costs and deadlines. The new electric Twingo combines the use of Chinese centers, European production and shorter lead times.
Automakers in Europe and other hubs of the global automotive sector have increasingly sought to follow a Chinese production model. The latest launch from French company Renault, the new Twingo, is a clear example of this movement.
The 100% electric car was designed on different continents, in a process that emerged as a response to the hypercompetitiveness imposed by China on the sector. It is there that many traditional automakers are developing new models focusing on speed, cost and technology.
The car is in production in Slovenia and will start arriving at European dealerships in April, with a price just below 20 thousand euros.
“The real competition is not China versus the West, but fast systems versus slow systems,” said Bill Russo, a former Chrysler executive and automotive industry analyst.
“To understand where the future of the automotive industry is heading, it is necessary to understand how China builds this type of product,” Russo told DW.
Construction companies go to China
Western and Japanese manufacturers such as Tesla, Volkswagen and GM have long produced in China, both for the domestic market and for export. More recently, many have expanded their presence to beyond productionstarting to design and develop entire models in the country, in an attempt to benefit from the concentration of electric vehicle suppliers, local knowledge and a broad consumer base.
Renault and Mercedes opened expanded research centers in Shanghai in 2024. Volkswagen expanded its research and development center in Anhui province in 2025, the same year that Toyota transferred all development of new cars aimed at Chinese consumers to the country.
“China has become, as one supplier said, the world academy of the automotive industry,” said Alexandre Marian, consultant at AlixPartners.
Still, as they compete with Chinese rivals abroad, traditional construction companies face pressure to reduce costs and accelerate product development in all markets — including their home countries.
New vehicle development cycles are around two years in China, less than half the time needed by traditional car manufacturers. According to Russo and other experts, Chinese companies rely more on automation, carry out steps in parallel, coordinate better with suppliers and keep designs simpler.
For Russo, the shorter deadlines are a byproduct of the industry’s shift to a technology-centric priority.
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Renault stopped selling its brand in the Chinese market in 2020. But a visit to the Shanghai Motor Show in 2023 convinced company executives that it was time to develop something within China.
“The question was understanding how to speed up our development process,” said Oliver Laik, responsible for the company’s entry-level compact car segment.
Renault’s development unit in Shanghai, known as the ACDC Center, allowed the company to get closer to the Chinese ecosystem and understand how it works.
The original Twingo debuted in 1992 at the Paris Motor Show, where it quickly gained the nickname “Le Frog” due to its compact front end and round headlights. Upgrading it as an electric vehicle initially seemed less attractive to Renault, according to Laik. Smaller cars have lower profit margins in Europe due to high fixed costs, and raising the price could push consumers towards used vehicles or other models.
But producing it in China — a hypothesis that quickly received support from the company’s management — would allow it to reduce costs and maintain an attractive price in Europe.
Less participation, more meetings
A normal development cycle for a new Twingo would have taken about 42 months, Laik estimates. Much of this time is dedicated to vehicle validation, a testing period that spans different seasons and includes exposures to various altitudes, as well as severe driving and corrosion conditions.
Instead of focusing on a long development phase after validation, the engineers at the ACDC Center worked in parallel, which allowed problems to be resolved in a timely manner.
Renault also changed its relationship with suppliers to a model known as “build to plan” — something like “production according to plan”.
Instead of asking suppliers for input, Renault began designing the parts and sending exact specifications to manufacturers, saving time and costs. In some cases, the company itself assembled components from suppliers, including banks.
Back in France, product designers also worked at a tighter pace, says Laik. The team began holding more frequent meetings, and the company’s vice presidents began receiving weekly updates.
What lessons remain?
Renault estimates that the use of its ACDC Center in China reduced costs by 40% compared to a traditional development process.
The company plans to produce two more models in the coming months, one for its subsidiary Dacia and the other for partner Nissan. It also aims to further reduce development time.
Future models will incorporate Chinese parts, according to Laik. Even the Twingo’s front headlights came from a Chinese supplier, as French and European suppliers were unable to meet Renault’s requirements.
The question remains as to whether construction companies will be able to replicate what they call “Chinese speed” in their domestic markets.
Hierarchical structures, AI and software
Traditional construction companies can still advance in other areas, believes Alexandre Marian, including more efficient use of artificial intelligence and the abandonment of hierarchical structures that extend deadlines. European engineers are very qualified and technically advanced, he says.
“They developed a lot of knowledge, a lot of experience, and created really good cars,” he told DW. “The point is that they need to change, but in changing, they also need to gain autonomy.”
For Bill Russo, the importance of adaptation goes beyond electric vehicles and reaches autonomous driving and software.
“This is a pressure cooker,” said Russo. “If we’re not quick, we miss the opportunity.”
