Renault’s new electric Twingo fits neatly into the French carmaker’s lineup: a modern mini designed for urban European drivers. But how it was developed — and why — illustrates a broader shift in the global auto industry toward China as a center of speed, cost efficiency and technology.
Renault developed the new Twingo in Shanghai in just 21 months after an initial design phase in France. The car is now being produced in Slovenia and arrives at European dealers this month with a price just under €20,000 ($23,000). That continent-hopping path highlights how legacy automakers are tapping China not only for manufacturing but for design and rapid development.
“The real competition is not China versus the West, it’s fast systems versus slow systems,” said former Chrysler executive and analyst Bill Russo. To understand the industry’s future, Russo said, you must understand how China builds products.
More automakers are moving R&D and development work to China to benefit from its dense ecosystem of EV suppliers, technical expertise and large consumer base. Tesla, Volkswagen, GM and others long manufactured in China; more recently they’ve expanded R&D footprints there. Renault and Mercedes opened expanded research facilities in Shanghai in 2024, Volkswagen built an R&D center in Anhui in 2025, and Toyota relocated all new car development for China into the country that same year.
Consultant Alexandre Marian of AlixPartners called China “the gym of the world” for the auto industry. The pressure from Chinese rivals pushing overseas has forced legacy carmakers to cut costs and speed product development. Development cycles in China often run around two years — less than half the time of traditional Western processes — by leaning on automation, running phases in parallel, coordinating tightly with suppliers and keeping designs simpler.
Renault’s push into China followed a visit to the Shanghai Motor Show in 2023. Although Renault exited the Chinese retail market in 2020, executives saw the opportunity to learn how to accelerate development. The company’s Shanghai ACDC Center allowed teams to work within the Chinese ecosystem and adopt faster processes.
Updating the iconic Twingo as an electric small car was initially unattractive because small cars have thinner margins in Europe and higher fixed costs can force price increases that drive buyers away. Producing and developing in China, however, helped keep costs down and the price competitive.
Instead of the typical 42-month development timeline Renault estimated for a new Twingo, engineers at the ACDC Center used parallel workflows and more frequent, compressed meetings with vice presidents updated weekly. They adopted a “build to plan” approach with suppliers: Renault designed parts, sent exact specs to manufacturers, and in some cases assembled supplier components itself (including seats). That reduced back-and-forth and saved time.
Renault estimates the China-based process cut development costs by about 40%. The company plans two more models in the coming months — one for Dacia and another for partner Nissan — and aims to shorten development time further. Future models will include more Chinese parts; even Twingo’s front lights came from a Chinese supplier after European suppliers failed to meet requirements.
The bigger question is whether legacy automakers can replicate “China speed” at home. Experts say there are other levers: better use of artificial intelligence, moving away from hierarchical structures that prolong lead times, and empowering engineers. European teams are technically strong and experienced, Alexandre Marian noted, so the challenge is organizational change as much as technical know-how.
For Russo, adapting is essential not only for EVs but for autonomous driving and software. “It’s a pressure cooker here,” he said. “If you’re not fast, then you’ll miss the opportunity.”