Mercedes-Benz hands over software expertise to a startup in China

ADAS Mercedes-Benz hands over software expertise to a startup in China

2024-12-04 From Sven Prawitz 1 min Reading Time

Mercedes-Benz ventures into the digital transformation with Chinese assistance. The automaker is investing $75 million in the AI startup Momenta and plans to launch four new models equipped with its assistance systems.

Mercedes-Benz is testing self-driving cars at SAE Level 4 in Beijing.(Bild: Mercdes-Benz) — Mercedes-Benz is testing self-driving cars at SAE Level 4 in Beijing.
(Bild: Mercdes-Benz)

Mercedes-Benz is significantly increasing its involvement with the Chinese startup Momenta, according to a report by the Reuters news agency, citing three insiders. The Stuttgart, Germany-based automaker plans to invest $75 million. Four new Mercedes models are expected to be equipped with Momenta software between 2025 and 2027.

What makes this move unique is that, for the first time, Mercedes would primarily rely on a Chinese supplier for a key technology, Reuters notes. Momenta is considered a leading provider of driver assistance systems in China, with customers including BYD, SAIC, and Audi.

The partnership comes at a crucial time for Mercedes, as the company lags behind in the important Chinese market, both in electric vehicles and software solutions. The collaboration could potentially expand to markets outside China in the future. According to Reuters, Momenta is planning an initial public offering in early 2025, and Mercedes could support this as a cornerstone investor.

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Date: 08.12.2025

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