Mercedes to make use of Momenta software program in 4 fashions, speed up China comeback, sources say

SHANGHAI/BERLIN (Reuters) -Mercedes-Benz is betting on China’s Momenta to assist it win again market share on this planet’s greatest auto market, with plans for contemporary funding and at the least 4 future fashions to make use of the autonomous driving startup’s software program, three sources with data of the matter mentioned. 

The plans, which haven’t been beforehand reported, will make autonomous-driving developer Momenta the primary Chinese language provider picked by Mercedes to be a main supplier of a key expertise and promoting level for its merchandise, as intense competitors and technological innovation in China drive Western automakers to rethink their supply-chain methods.  

The German premium automaker has since 2017 had an funding in Momenta however the two firms have but to publicly announce collectively developed merchandise.

Within the years since, the Chinese language agency has emerged as one among China’s main suppliers of superior driving assisted system (ADAS) options just like Tesla (NASDAQ:TSLA)’s full self driving that may navigate city site visitors with human drivers’ supervision. 

Mercedes intends to make a contemporary $75-million funding in Momenta and should make investments extra as a cornerstone investor in Momenta’s preliminary public providing scheduled within the first quarter of 2025, the sources mentioned. 

It has chosen Momenta as its ADAS provider in 4 fashions to be launched in China from 2025 to 2027 and is discussing internally whether or not to make use of Momenta software program in additional Chinese language fashions past 2027, one of many individuals mentioned.  

It is usually working with Momenta on preliminary plans to make use of the Chinese language provider’s expertise in Mercedes fashions outdoors China, two of the individuals mentioned.

Mercedes and Momenta declined to remark.  

Mercedes has additionally been exploring ADAS choices with U.S. artificial-intelligence chipmaker Nvidia (NASDAQ:NVDA) as a part of a partnership introduced in 2020, after they mentioned they might develop Mercedes-Benz (OTC:MBGAF) autos with upgradable automated-driving capabilities. Nevertheless, the corporations have but to unveil any merchandise. 

BEHIND IN CHINA

Mercedes is taking part in catch-up in China on each electrical autos and smart-driving software program, which is led by Tesla, Nio (NYSE:NIO) and Xiaomi (OTC:XIACF). 

Solely 3% of Mercedes’ 443,764 automobiles offered in China this yr had been EVs, in response to the China Affiliation of Vehicle Producers, fewer than one-tenth of Nio’s gross sales.

Automakers in China are locked in an autonomous-driving race, with BYD (SZ:002594) hiring hundreds of engineers to ramp up its in-house improvement of such software program. Nio, Xpeng (NYSE:XPEV) and Xiaomi are creating their very own ADAS chips that might obtain higher smart-driving efficiency with their EVs. 

The development has additionally helped Chinese language ADAS suppliers Momenta, Huawei and DeepRoute.ai rapidly amass automaker shoppers and embed a number of car fashions inside their methods.  

Momenta’s shoppers embrace BYD, SAIC and Audi in China. Momenta’s largest automaker investor is China’s SAIC whereas different backers embrace Basic Motors (NYSE:GM) and Toyota (NYSE:TM).