Renault Group's Chief Technology Officer, Philippe Brunet, has visited China 20 times over the past three years, with this year already marking his third trip in the first half. For a CTO overseeing engineering centers across seven countries globally, this frequency itself conveys a significant message.
Brunet described China as a "compass" during a conversation on June 17, stating, "Here, I can understand the latest directions in technological development and better grasp the needs of Chinese consumers. I believe the demands of Chinese consumers today may become the demands of European consumers in one to two years."
This perspective might not have resonated with the European automotive industry two years ago. At that time, debates over electrification were intense, with many executives publicly questioning the pure-electric path and doubling down on internal combustion engine development. However, the situation has evolved faster than anticipated. Rising fuel prices and geopolitical tensions have accelerated the expansion of electric vehicle (EV) market share in Europe. Renault's proportion of EV sales in Europe has climbed from less than 20% a year ago to around 50% (as of April 2026).
Simultaneously, the market for affordable electric vehicles in Europe remains largely untapped. There are very few pure-electric models priced below 20,000 euros, leaving consumers with extremely limited choices for an inexpensive EV. This presents a clear opportunity for Renault, a brand historically positioned in the mainstream mass market rather than the luxury segment.
This opportunity is being validated by a compact car called the Twingo E-Tech. Developed in Shanghai, manufactured in Slovenia, and launched in Europe with a starting price of 19,490 euros, it achieved a development cycle of just 22 months—a record speed for Renault. Current order volumes have doubled initial expectations.
A single vehicle, of course, does not tell the whole story. However, the Twingo demonstrates a possibility: leveraging China's technology ecosystem and development pace to build electric vehicles that European consumers can afford. The real challenge lies ahead: whether this model can evolve from a one-off success to a standard practice depends on how much a century-old automaker is willing to transform itself.
Technology for Purpose, Not for Its Own Sake
During the conversation, Brunet repeatedly emphasized a core stance: Renault is not a company that pursues technological accumulation for its own sake.
"We never pursue blind technological accumulation; we don't do technology just for the sake of doing technology," he said. "We focus on developing technologies that meet real customer needs, target the mass market, and are cost-affordable."
This statement addresses a practical issue. The current challenge for the European automotive industry is not a lack of technology, but a lack of capability to make technology affordable. Traditional European automakers are accustomed to redesigning all components for each new project, with development cycles often stretching three to four years. Costs accumulate layer by layer, ultimately reflected in the final price. A compact electric vehicle developed entirely in Europe struggles to be priced below 25,000 euros.
Renault's solution involves tapping into China's supply chain ecosystem. Brunet likened China's industrial chain to a "large supermarket": "In Europe, we are used to redesigning all components for each new project, but within a two-year development cycle, this 'from scratch' model is unfeasible. China, however, possesses an extremely comprehensive ecosystem. It's like being in a 'large supermarket' where we can conveniently select mature components from the 'shelves'."
This perspective needs to be understood within Renault's supply chain strategy. Brunet revealed that while European suppliers still form the majority, Renault aims to introduce at least one Chinese supplier into the competition for every component module. The goal is to use competition to drive efficiency.
"We found that having Chinese suppliers involved in each module can effectively drive European suppliers to improve their own performance," he said. For the Twingo, the electric drive system comes from Shanghai Edrive, and the glass from Fuyao. Compared to the situation two or three years ago when Chinese suppliers were scarce, the change is already evident.
This model operates on a deeper logic. The Twingo is produced at Renault's plant in Slovenia, an EU member state, completely unaffected by the EU's countervailing duties on Chinese-made electric vehicles, which can be as high as 45.3%. These tariffs have already slowed the overseas expansion plans of several Chinese brands. Renault's approach essentially uses China's R&D efficiency and supply chain cost advantages within a European manufacturing framework, finding a compliant path around tariff barriers.
This is another layer of meaning behind "not doing technology for its own sake": technological choices follow commercial logic, and cost structures comply with market access rules.
Retaining Know-How in China
The success of the Twingo has altered the role of the ACDC (Advanced China Development Center). Established by Renault in Shanghai in 2024, the ACDC was initially positioned to connect with Chinese partners, integrate technological resources, and complete vehicle development. Following the Twingo project, it is evolving into a "capability center" with a global scope.
Brunet explained the meaning of this upgrade: "The core team of the ACDC started in Shanghai. The initial task focused on connecting with diverse partners, collaborating deeply to integrate strengths and achieve vehicle development. The second step is to transform these successful experiences into platform capabilities, focusing on core technology areas like platform architecture, chassis, and electronic/electrical architecture, thereby meeting the development needs of different vehicle models for global markets, including Brazil and Korea." In summary, it's about "being rooted locally to serve globally."
In other words, the ACDC is no longer just about making a car for Europe; it aims to export platform capabilities. Renault's cooperation with Geely is already progressing along this path, developing new models for the Korean market based on the CMA architecture and sharing the RGEA platform for the Brazilian market.
Brunet specifically corrected a common description: "We prefer to define this process as 'connecting with and learning from the Chinese ecosystem,' rather than so-called 'technology export'."
This correction is not merely semantic politeness but describes an organizational relationship: the Chinese team is not a subcontractor from which capabilities are extracted, but a source that continuously accumulates and exports know-how.
"Regardless of whether the final application is in Europe, South America, or other markets, the most critical core technical expertise will remain in China," Brunet said.
This model is not unique in the industry. Volkswagen has established an Intelligent Connected Electric Vehicle center in Hefei; BMW's R&D center in Shenyang is already exporting cockpit and digital solutions globally. Stellantis, through its joint venture with Leapmotor, is directly introducing China-developed electric vehicles to the European market. The technical cooperation between Xpeng and Volkswagen, and between Audi and SAIC, are essentially doing the same thing: grafting China's technology ecosystem onto global platforms.
The difference lies in the degree. Renault is going further. It is not merely procuring technology or co-developing a specific model, but anchoring platform-level R&D capability in China, allowing the Chinese team to become one of the definers of global architectures.
The Greatest Challenge Isn't Technology
When asked about the biggest challenge in applying China-developed solutions to global markets, Brunet's answer did not focus on technology.
"Currently, our biggest challenge is not the process itself, but a shift in mindset," he said. "Many Renault employees must acknowledge that even things we have done for many years and done well still have significant room for improvement. When you see someone doing it better than you, it means we need to change. This change in mindset is very difficult."
The candidness of this statement is uncommon in public remarks by multinational automaker executives. The issue it points to extends far beyond Renault alone.
The European automotive industry is experiencing a profound production capacity crisis. Volkswagen is closing a German plant for the first time in its 88-year history and plans to cut 734,000 units of German capacity by 2030, with 35,000 job cuts; capacity utilization at Stellantis's European plants is around 60%, with production at the Turin Mirafiori plant plummeting 70% in 2024, and Italy's overall vehicle output hitting a 68-year low. Renault itself is reducing engineering positions globally, with reports from Automotive World indicating cuts ranging between 1,650 and 2,400 people.
The signal is clear: against a backdrop of global contraction, China is the direction where Renault is choosing to increase its investment.
Brunet shared five key learnings from his ACDC experience, each pointing to fundamental differences in working methods between China and Europe: co-location over dispersed collaboration, parallel process advancement over linear handovers, daily decision-making cycles over weekly ones, and prioritizing mature components over designing from scratch.
"In Europe, the habitual rhythm is often 'reply by the end of the week,'" Brunet said. "In China, partners often expect feedback on the same day."
The speed gap directly manifests in development cycles. The Twingo took 22 months, with subsequent family models targeting 16 to 18 months. Brunet shared a telling detail: "When we initially proposed the 22-month target, Chinese suppliers were very confident. When we tried to push it down to 16 months, they started to get a bit nervous."
A 16-month timeline that makes even Chinese suppliers nervous is approaching the industry's cutting edge. However, the real bottleneck is not how fast a single project can run, but whether a century-old European automaker can institutionalize this speed at an organizational level.
In Renault's "futuREady" strategy released in March, one pillar, "Excellence Ready," aims for all vehicle models to complete development within two years. Brunet likened it to running a marathon: "We need to do the relevant preparation and practice; we can't just decide on a whim to run a marathon."
The Twingo proved that 22 months is possible. But turning 22 months from an exception into a rule requires changing not just a single process, but the entire organization's mindset inertia. This challenge applies to Renault and to every multinational automaker exploring the same direction.
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