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Briefing
Decision-making and development speed: European carmakers versus China
- Decision-making
- Development speed
- Competition from China
Chinese carmakers develop new models 25 to 30 per cent faster than European ones. In 2026, analysts and executives locate the cause mainly in the organisation. At KPMG, slow decisions and governance top the list of internal brakes; at Capgemini, six in ten blame delays on processes.
This briefing has not been updated for more than three months. Check the figures against the source before you use them.
Compiled with AI from public sources, with the source for every figure. Key figures labelled Checked have been compared with the source by a person. How that works
Key figures
- 25-30%faster development of a new vehicle at Chinese carmakers than at European rivals, at 20 to 30 per cent lower cost.Roland BergerNot yet checked
- 14 monthswere gained by a Chinese car manufacturer against the global benchmark, mainly through changes in organisation and process.Roland BergerNot yet checked
- 6 in 10executives in the car industry blame delays in scaling AI mainly on inefficient processes.Capgemini Research InstituteNot yet checked
- 92%of companies in the sector take twelve months or more to scale up a new digital or AI application after the pilot.KPMGNot yet checked
What the sources say
For its China Speed analysis, published in March 2026, Roland Berger compared the costs and development times of Chinese, European and other manufacturers, supplemented by its own benchmarking work; the press release does not say how many vehicles or companies were included. Chinese carmakers develop a new vehicle 25 to 30 per cent faster than European ones, and 20 to 30 per cent more cheaply. About 60 per cent of the cost advantage comes from design and system choices, such as standardisation and less complex products. According to the firm, the speed comes from much shorter strategy and decision phases, up to 80 per cent virtual testing, developing software and hardware in parallel, and involving suppliers early and systematically. One Chinese car manufacturer gained fourteen months against the global benchmark, mainly through changes in organisation and process. Even when Chinese companies move their development to Europe, they keep more than half of their efficiency advantage.
In July 2026 Capgemini Research Institute surveyed 800 executives from twelve countries: 400 at carmakers, 160 at large suppliers and 240 at technology companies. Six in ten blame delays in product development mainly on inefficient processes rather than on the limits of the technology, and 45 per cent still have no strategy or roadmap for AI in product development. The group getting the most value from AI develops 17 per cent faster and gets to market 19 per cent sooner. Capgemini attributes this to a better data foundation, clear business cases and disciplined governance and ways of working, more than to the AI itself.
In June 2026 KPMG surveyed 775 executives at carmakers, suppliers, dealers and mobility companies, 330 of them in Europe. Slow decision-making and governance emerge as the biggest internal barrier to strategy, cited by almost four in ten, with functional silos and resistance to change close behind. The trade-off between speed to market and quality is the tension most often named as the top priority for the next three years. Scaling up is slow: 92 per cent take twelve months or more to roll out a new digital, software or AI application after the pilot, and over a third take more than two years. KPMG recommends making deployment speed a leadership performance metric.
At the end of 2025 AlixPartners surveyed 1,002 executives at carmakers, suppliers and technology companies in the US, China, India, Europe, the United Kingdom, Japan and South Korea. Among Chinese carmakers, 41 per cent build the vehicle’s software mainly in-house, against 25 to 27 per cent in the West, and 36 per cent spend more than half of their R&D budget on software-defined vehicles, against 19 to 21 per cent in the US, Europe and the United Kingdom. Two thirds of carmakers need more than eight weeks to roll out a new software application after the last line of code is written. AlixPartners explicitly calls the shift to the software-defined vehicle a question of operating model as well.
How solid is this? In 2026 four independent firms, coming from different angles (a cost benchmark and three surveys), point to organisation and process as the brake on speed. The analysis of causes does, however, rest largely on executives’ self-reporting and a single published case; there is no second year of measurement for these questions yet, and Dutch figures are missing. So the picture is not yet settled.
For the leadership team
How much of a development programme's lead time goes on the work itself, and how much on waiting for a decision, an approval or another department? Roland Berger describes a Chinese manufacturer that gained fourteen months through organisation and process. The trade-off for the leadership team is which decisions can be made faster without harming quality and safety, and who guards that line.
Sources
- Capgemini Research Institute68% of automotive organizations use or pilot agentic AI for product development, but only 5% report mature AI governance (Rewiring automotive product development)
Six in ten executives report that delays are primarily driven by process inefficiencies rather than technology limitations
- KPMG26th Global Automotive Executive Survey: Thriving in the age of moving targets
Make deployment speed a leadership KPI and measure enterprise-wide adoption.
- AlixPartners · Himanshu Khandelwal and Sebastian BoeswaldUnlocking Sustainable Value in Software-Defined Vehicles
This is not just a technology race; it is an operating-model and lifecycle-economics reset race
- Roland Berger"China Speed Light" Possible in Europe: Production Advantage Is Not Driven by Labor Costs Alone
Roland Berger identifies development speed in China as the outcome of a consistently integrated development approach.
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How this briefing has been updated
Title now describes the topics; previously “The car industry looks for its lag behind China in its own decision-making” (AI)
First draft based on Roland Berger, AlixPartners, KPMG and Capgemini; in 2026 four firms point to organisation and process as the brake on development speed. (AI)