The auto industry is being forced to move faster by China's EV makers

Building a new car now takes two years, and that's the new normal

by · TechSpot

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Global automakers are compressing vehicle development timelines as they scramble to keep pace with China's electric-vehicle makers, whose speed-to-market has reset industry expectations. Designing, prototyping, and producing a new EV – once a roughly four-year process – now often takes half that time or less in Europe and Japan. The shift reflects both economic pressure and cultural change. For Western manufacturers long accustomed to extended timelines and layered approval systems, China's flexibility and software-driven design have become survival models.

Ford and Renault are teaming up to produce small electric vehicles in Europe, with Renault showcasing what accelerated development now looks like in practice. Its latest Twingo, developed in just 21 months, is set to reach the market in 2026, while the next compact model – the Dacia Hipster – is expected to take only 16 months, a sharp break from the industry's traditional three- to four-year cycles. Other manufacturers are moving just as quickly: Volkswagen has cut development timelines in its China operations by roughly 30 percent, while Nissan's N7 sedan, built with local partner Dongfeng, reached production in about two years and now sells in China for under $20,000.

Laurence Noël, global head of automotive at Capgemini, told the Financial Times that extended development cycles are no longer survivable in the current EV market. He said manufacturers that still take five years to bring a new model to market are effectively guaranteeing failure.

"If you're taking five years to develop a car, when that's going to hit the market, you're dead," he said. "So you need to be fast."

Technology is the primary driver of this acceleration. Automakers increasingly rely on virtual design and simulation to cut time spent on physical testing. However, executives say the more profound shift is cultural – embracing the speed and pragmatism of Chinese manufacturers who have rethought not just tools, but workflow, hierarchies, and decision-making. For example, Jim Baumbick, Ford's head of Europe, noted that Chinese automakers such as BYD reuse standard parts across models, focusing their energy instead on evolving the software and electronic systems that define a vehicle's identity.

Vittorio d'Arienzo, an executive at Renault's Ampere electric unit, said the Chinese ecosystem enables faster prototyping because suppliers deliver parts almost immediately. About 45 percent of the Twingo's components came from China.

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Designers and engineers worked simultaneously on different systems, while Renault's plant in Slovenia began assembling production lines even before final prototypes were finished. According to d'Arienzo, the process required constant real-time coordination, sometimes managed via WhatsApp messages between teams in different countries.

"That level of speed in perfect coordination allowed us to fix things we wanted to improve," he said.

However, faster development cannot bypass the fundamental physical limits of vehicle engineering. Nissan CFO Jérémie Papin said there remains an "incompressible time" of about 12 months to move from digital models to physical production. Analysts caution that cutting months from standard processes introduces new risks, particularly to durability, safety, and brand reputation.

Renault's Twingo was developed in just 21 months with 45 percent of its components sourced from China.

Stephen Dyer, a partner at consultancy firm AlixPartners in Shanghai, said Chinese automakers' willingness to move quickly stems from flatter hierarchies and an openness to bypass full validation if necessary. AlixPartners' research shows local EV manufacturers test for roughly 600,000 kilometres of durability on average, compared with about 3 million kilometres typical among foreign brands.

"[Chinese carmakers] may move forward … before all validations are complete in order to meet launch deadlines," Dyer said. "In a software-driven market, launching too late means your technology may already be outdated."

The software-first mindset has also changed attitudes toward post-launch updates. Rather than delaying release until every issue is solved, Chinese EV makers commonly address flaws with over-the-air patches and new features delivered digitally. Traditional automakers, by contrast, have historically avoided releasing vehicles until all systems are fully validated.

Still, some companies remain hesitant to abandon their old methods. A longtime adviser to a Japanese brand said that as software becomes more central, certain legacy manufacturers risk "being in denial" about the need to adapt.

"The culture of safety first, which is a good thing in the right measure, is coming up against the need – driven by software – to move fast and break things," the adviser said.

The world's major automakers now face an operating dilemma: speed has become essential to competitiveness, yet the faster they move, the thinner the margin for error becomes. For an industry built on precision engineering and long-memory industrial planning, the race to match China's velocity represents not just a shift in pace – but a fundamental rewrite of how cars get made.

Image credit: The Financial Times