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At the 29th Chengdu Motor Show in August 2025, Mercedes-Benz unveiled the long-wheelbase GLE SUV with a jointly developed assisted-driving system from Chinese startup Momenta. The model will later adopt Momenta's R7 World Model, a self-learning AI engine. This partnership, which began with Mercedes-Benz's investment in Momenta in 2017, signals a reversal of the traditional flow: instead of bringing overseas tech into China, global automakers are now plugging into China's rapid innovation cycle.
The shift is driven by China's explosive NEV market. In July 2025, NEV sales hit 1.56 million units, capturing over 60% of monthly new car sales for the first time. Features like urban navigation assistance and automated parking, once limited to vehicles above 300,000 yuan, now appear in the 150,000–200,000 yuan segment and even lower. This rapid adoption, combined with fierce competition, has turned Chinese firms like Huawei and Momenta into indispensable suppliers of intelligent driving systems and smart cockpits.
Volkswagen, BMW, Toyota and other global players are following suit. They are teaming up with Chinese tech companies to close the gap between their traditional 48–60 month development cycles and China's fast-paced market. Yang Xian, deputy general manager of FAW-Volkswagen's Jetta brand, admitted: "In NEVs, we did not keep pace with China's overall development speed." This structural mismatch is pushing joint ventures to re-evaluate their R&D strategies.
Momenta is not stopping at domestic partnerships. The company is expanding overseas along two tracks: accompanying Chinese automakers like Chery into foreign markets, and delivering global vehicle programs with Mercedes-Benz, General Motors, Toyota and Hyundai. In July 2025, it won approval from Germany's Federal Motor Transport Authority for Level 4 autonomous driving road tests across the country—a key milestone for European deployment. Level 4 vehicles can operate fully autonomously in designated areas without a human backup.
Other Chinese autonomous driving firms are also going global. Baidu's Apollo Go has launched fully driverless commercial ride-hailing in Dubai. WeRide operates robotaxi services in the Middle East and has partnered with Denmark's GreenMobility for autonomous shared mobility. Pony.ai runs services with ComfortDelGro in Singapore and is advancing robotaxi projects in Dubai and Qatar. These ventures highlight that global expansion involves more than software exports: traffic codes, data governance, safety standards and road conditions differ sharply across markets. Systems trained on Chinese roads require further verification and adaptation, and commercial roll-out depends on local regulatory approvals.
Industry observers view the Mercedes-Benz–Momenta alliance as a model for how Chinese smart-driving firms are building ties with foreign automakers and validating their technology overseas. However, whether this translates into sustained roles within global vehicle programs remains to be seen. As China's tech edge continues to sharpen, the global auto industry is increasingly wiring itself into the country's innovation ecosystem.
Note: This article has been updated for clarity and to reflect the latest developments as of September 2025.
