Renault develops new electric Twingo in China in 21 months, cutting costs by 40%

Renault developed its new electric Twingo over 21 months at a Shanghai facility, cutting development costs by 40% compared to traditional processes, the French carmaker said. The car, priced just under €20,000 ($23,000), is now in production in Slovenia and arriving at dealers this month.

A normal development cycle for a new Twingo would have taken Renault 42 months, according to Olivier Laik, head of the company's A-segment cars. The accelerated timeline was achieved at Renault's Shanghai development facility, known as the ACDC Center, following an initial design phase in France. Renault estimates that using the Chinese center saved it 40% on costs compared to a traditional development process.

Renault stopped selling its brand in the Chinese market in 2020. But a visit to the Shanghai Motor Show in 2023 convinced Renault executives that it was time to develop something inside China. "The thing was about getting this grip on how to accelerate our procedure of development," Laik said.

Renault changed its supplier relationship to a "build to plan" model, designing parts and sending exact specifications to manufacturers, saving both cost and time. In some cases, Renault assembled supplier parts itself, including seats. Even the Twingo's front lights came from a Chinese supplier after French and European suppliers failed to meet Renault's requirements, Laik said.

The original Twingo debuted in 1992 at the Paris Motor Show. Renault plans to produce two more models in the coming months, one for its subsidiary Dacia and another for partner Nissan, and aims to shave off even more development time.

Renault is among a growing number of legacy automakers expanding their design and development footprints in China. Renault and Mercedes each opened expanded research facilities in Shanghai in 2024. Volkswagen built out its R&D center in Anhui province in 2025, the same year Toyota relocated all new car development for China into the country.

"China has become, as one supplier said, the gym of the world in terms of the automotive industry," said Alexandre Marian, a consultant with AlixPartners, a global management consulting firm.

"The real competition is not China versus the West, it's fast systems versus slow systems," said former Chrysler executive and auto analyst Bill Russo. "If you want to understand where the future of the auto industry is going, you have to understand how China builds these types of products."