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Renault is preparing more than 20 new models that will each be developed in less than two years in one of the most ambitious projects as western carmakers turn to fewer components and artificial intelligence to match the engineering speed of Chinese rivals.
The French group and other legacy carmakers from Volkswagen, Nissan to Stellantis are tearing down vehicles made by BYD and other Chinese carmakers, hiring Chinese engineers and learning from their joint venture partners in China to compete against an influx of new products that are cheaper and yet equipped with more advanced software.
What sets it apart is its ability to leverage its smaller scale to be nimbler to adapt to market changes, building a continuous flow of new electric vehicles in half the time it historically took to build a car. While other non-Chinese carmakers have announced similar ambitions, they have yet to implement the speed promised by Renault.
“We have a chance in Renault to be small in volume, very focused on our markets . . . and be faster than the big Volkswagen or Stellantis,” said Cédric Combemorel, its deputy chief technology officer.
Renault will release an all-electric new Twingo next year, after two years of development compared to the four it previously took. After Twingo, it has more than 20 projects, including its new Dacia minicar, which it aims to launch in 2027.
The Dacia minicar was developed in just 16 months — a record for western brands and even faster than the Chinese average development time of 18 to 20 months. Both vehicles will be produced at its plant in Slovenia.
The strategy was developed by Luca de Meo, who is to take over luxury group Kering, but executives say Renault will continue to find ways to execute his plans even after his departure.
Despite Renault’s optimism over executing its strategy, rival executives question whether the French group, and other legacy carmakers who follow, can produce a continuous flow of new vehicles that match the Chinese at speed and cost.
According to Alexandre Marian, partner at AlixPartners, not only can Chinese carmakers bring new cars to market at twice the speed, they can do so with up to 50 per cent less investment while using parts that are 30 per cent per cent cheaper than their western rivals.
Tighter deadlines, faster decision-making, software development, and in-house development of components are among the factors that make this possible. “On all levels it helps them win,” Marian added.
Combemorel said the faster development cycle also required fewer and simpler parts. For example, including the number of vehicle colours, Renault also used to offer up to 220 options to consumers — compared with just 15 for some Chinese brands.
“Frankly, the Chinese have learned for a long time from the Europeans, and now we’re turning this around so we learn something from them,” said Guido Haak, Renault’s chief programme officer.
A bigger challenge for Renault is “culture change” internally and among its suppliers, who will need to demonstrate that their components are not only essential but can also be developed faster.
To accelerate the shift, Renault has invested €26mn to build a simulation centre just outside Paris that houses an 8-tonne carbon-fibre pod to test prototypes of future vehicles on virtual roads to save both time and cost.
For each new model, a so-called “digital twin” is created so that designers and engineers anywhere in the world can work on vehicle development together virtually, and problems can be fixed before a physical prototype is created.
Renault also uses artificial intelligence to monitor any risks that could cause disruptions to its supply chains — which it claims has also helped to reduce vehicle delivery times by 60 per cent.
As western carmakers use the same methods to make vehicles like the Chinese, some analysts warn of the risk that the end products would start to look similar.
Haak stressed that Renault could still differentiate its cars with exterior design as well as experience inside the car.
“With the Chinese, you have a lot of very similar cars,” he said. “The most important thing is to understand your customer needs and that is what should differentiate us. If we’re not doing that, we have lost it.”