China’s smart-driving firms seek place in global cars

**Chinese Smart‑Driving Companies Expand Partnerships with Global Automakers**

*Chengdu, China – August 30, 2026* – At the 2026 Chengdu Motor Show, Mercedes‑Benz unveiled the latest long‑wheelbase GLE SUV, featuring an assisted‑driving system co‑developed with Chinese autonomous‑driving technology firm Momenta. The vehicle is also slated to incorporate Momenta’s “R7 World Model,” a self‑improving physical AI engine, in a later update. Mercedes‑Benz first invested in Momenta in 2017, and the collaboration has broadened in recent years.

The partnership reflects a broader shift in the automotive industry. Traditionally, foreign manufacturers introduced overseas‑developed models into China and made limited adaptations for local markets. As software and artificial intelligence become central to vehicle design, many global brands are now working with Chinese tech suppliers. BMW, Volkswagen and Toyota have announced similar collaborations with Chinese firms.

China’s rapidly evolving market is driving this change. Advanced assisted‑driving functions, once confined to vehicles priced above 300,000 yuan (approximately US$44,000), are now appearing in models priced between 150,000 and 200,000 yuan, and occasionally in lower‑tier segments. At the Chengdu show, urban navigation assistance and automated parking were highlighted as standard features on newly launched models.

The expansion of new‑energy vehicles (NEVs) is a key factor. According to the China Association of Automobile Manufacturers, NEV sales reached 1.56 million units in July 2026, representing more than 60 % of monthly new‑vehicle sales for the first time. As NEVs spread across price segments, Chinese automakers are seeking differentiation through smart‑driving capabilities.

Industry insiders note that legacy research‑and‑development cycles—often 48 to 60 months—are increasingly mismatched with the fast‑paced Chinese NEV market. “In NEVs, we indeed did not keep pace with China’s overall development speed,” said Yang Xian, deputy general manager of FAW‑Volkswagen’s Jetta brand.

Momenta’s ambitions extend beyond the domestic market. The company is pursuing two parallel routes for overseas growth: (1) accompanying Chinese automakers such as Chery into foreign markets, and (2) delivering cross‑border vehicle programs with international partners, including Mercedes‑Benz, General Motors, Toyota and Hyundai, according to Momenta vice president Gu Gongyao. In July 2026, Momenta obtained approval from Germany’s Federal Motor Transport Authority (KBA) to conduct Level 4 autonomous‑driving road tests nationwide—a milestone for its European expansion. Level 4 vehicles can operate fully autonomously within designated scenarios without a human backup driver.

Other Chinese autonomous‑driving firms are also testing global markets. Baidu’s Apollo Go service has launched fully driverless ride‑hailing in Dubai; WeRide operates robotaxi services across the Middle East and is planning autonomous shared‑mobility services in Denmark with GreenMobility; Pony.ai runs autonomous mobility services with ComfortDelGro in Singapore and is developing robotaxi projects in Dubai and Qatar.

These initiatives underscore the challenges of international expansion. Differences in traffic regulations, data‑governance rules, safety standards and road conditions require extensive validation and adaptation of systems originally trained on Chinese roads, as well as local regulatory approvals.

Observers view the Mercedes‑Benz–Momenta collaboration as a case study of how Chinese smart‑driving firms are integrating with global automakers and seeking validation abroad. However, they caution that the long‑term impact on worldwide vehicle programs remains uncertain.

*Source: Xinhua, “China’s smart‑dr

Article and image source: singaporestar.com