Traditional manufacturers create research centers in China to simplify designs and cut time to launch new cars
Automakers in Europe and other automotive hubs around the world 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, a process that came in response to the hyper-competitiveness of the sector imposed by China. 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 began arriving at European dealerships in April, with a price just below 20 thousand euros (around R$116 thousand). There is still no forecast for sale in Brazil.
“The real competition is not China versus the West, but fast systems versus slow systems“, said Bill Russo, former Chrysler executive and automotive sector analyst.
“If you want to understand where the future of the auto industry is going, you need to understand how China builds these types of products“, Russo told DW.
Automakers go to China
Western and Japanese manufacturers such as Tesla, Volkswagen and GM have long produced in China for both the domestic and export markets.
More recently, many have expanded their presence beyond manufacturing to design and develop entire models in the country, in an attempt to benefit from the concentration of electric vehicle suppliers, local expertise 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 moved all development of new consumer cars from China to the country.
“China has become, as one supplier put it, the world’s academy in terms of the automobile industry“, said Alexandre Marian, consultant at AlixPartners.
Still, as they compete with Chinese rivals abroad, traditional automakers face pressure to reduce costs and accelerate product development in all markets — including their home countries.
New vehicle development cycles average around 2 years in China, less than half the time required for traditional automakers. According to Russo and other experts, Chinese companies rely more on automation, conduct steps in parallel, are more coordinated with suppliers and maintain simpler designs.
For Russo, the shorter deadlines are a byproduct of the industry’s shift to a technology-first focus.
Updating templates
Renault stopped selling its brand in the Chinese market in 2020. But a visit to the Shanghai Auto 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, head of 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 earned the nickname “And the Frog” (“The Frog”) due to the compact front 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 — something that quickly received support from the company’s top brass — would reduce costs and maintain an attractive price in Europe.
Less supplier 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 period of testing that spans different seasons and includes exposure to various altitudes, as well as severe driving and corrosion conditions.
Instead of focusing on a long development phase after validation, 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 “planned production“.
Instead of asking suppliers for input, Renault designed the parts and sent 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 held more frequent meetings, and the company’s vice presidents began receiving weekly updates.
What lessons are learned from the experience in China?
Renault estimates that using its ACDC Center in China has reduced costs by 40% compared to a traditional development process.
The company plans to produce 2 more models in the coming months, one for its subsidiary Dacia and another 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 automakers can replicate in their domestic markets what they call “Chinese speed“.
Hierarchical structures, AI and software
Traditional automakers can still advance in other areas, Alexandre Marian believes, including more efficient use of artificial intelligence and the abandonment of hierarchical structures that extend deadlines.
European engineers are very qualified and technically advanced, says Marian.
“They developed a lot of knowledge, a lot of experience, and created really good cars“, says Marian to DW. “The point is that they need to change, but in changing they also need to empower themselves“.
For Bill Russo, the importance of adaptation goes beyond electric vehicles and reaches autonomous driving and software.
“Here is a pressure cooker“, stated Russo. “If you are not quick, you will miss the opportunity“.
Deutsche Welle is Germany’s international broadcaster and produces independent journalism in 30 languages.
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