In the fast-paced world of automotive development, Chinese car makers are setting the standard with their lightning-fast speed of bringing new vehicles to market. Western car makers are feeling the pressure to keep up with this “China Speed” in order to remain competitive in the industry.
One of the key advantages that Chinese car makers have is their ability to develop new vehicles in a fraction of the time it takes Western car makers. While it typically takes 20 to 24 months for a new vehicle to be developed in China, Western car makers can take between 36 to almost 50 months to achieve the same result. This difference in development time directly translates into a difference in cost, as longer development times tie up resources that could be monetized and may result in outdated technology upon release.
To match the speed of their Chinese counterparts, Western car makers are looking to adopt a more software-centric mindset. Unlike Western manufacturers who typically create a generation one and move on to generation two, Chinese car makers continuously develop their vehicles, drawing from their background in the software world. This agile approach allows them to quickly react to market trends and incorporate new technologies into their vehicles.
Another factor contributing to China’s development speed is the work ethic of their development teams. Chinese employees often work long hours, following a 996 work schedule of 9am to 9pm six days a week. This dedication to their work and the competitiveness of the market drives Chinese car makers to achieve faster development times.
In order to keep pace with China Speed, Western car makers are exploring new strategies such as collaborating with Chinese partners on development and establishing local R&D centers in China. Volkswagen, for example, is leveraging its global network to streamline the development process and bring new models to market more quickly.
Renault is one company that believes it has cracked the code to fast development, with plans to bring the new electric Twingo to market in just 21 months. This accelerated timeline falls under Renault’s Leap 100 program, which aims to streamline the development process and deliver vehicles to market faster than ever before.
As the automotive industry continues to evolve, Western car makers are realizing the importance of speed and agility in development. By adopting the principles of China Speed and embracing a more software-centric approach, they can stay competitive in an increasingly fast-paced market.
