Mercedes Benz frequently wastes no time in emphasizing its technological superiority when marketing its range of cars and SUVs. However, this superiority either never truly existed or is now in a state of decline. The question arises: is Mercedes in denial, or has it been overtaken in the 21st-century race for software hegemony?

It is clear that Mercedes’s technological standing is being supplanted by the Chinese, the company has effectively waved the white flag of surrender specifically surrounding autonomous driving software and hardware.

Mercedes will use autonomous technology in the upcoming all-electric CLA developed by the Chinese startup Momenta. Unlike traditional setups, the Momenta system operates independently of high-definition maps. It promises advanced urban navigation assistance capabilities.

Momenta’s technology, scheduled for mass production in April 2025, represents a significant milestone as Mercedes-Benz ventures into adopting an intelligent driving solution from a Chinese supplier for the first time.

The forthcoming CLA will be the first Mercedes-Benz model to feature city pilot-assisted driving capabilities. Powering these autonomous and ADAS features will be the advanced Nvidia Orin X chip. Founded in 2016 and headquartered in Suzhou, approximately an hour’s drive from Shanghai city centre, Momenta has swiftly emerged as a key player in China’s intelligent driving industry.

Mercedes-Benz participated in its Series B funding round just six months after its establishment in early 2017. Continuing its commitment, Mercedes-Benz further invested in Momenta’s Series C round in 2021, underscoring its confidence in the company’s trajectory and contributions to automotive innovation.

China’s smart driving market is fiercely competitive, with companies such as Huawei, Nio, Xpeng, and Xiaomi already providing advanced driver assistance features. In comparison, Mercedes-Benz has been slower to progress in this domain. Its most recent advancement is the introduction of highway pilot assistance in the 2023 E-Class long-wheelbase version.

Other notable investors in Momenta include US-based GM, Chinese automotive giant Shanghai Auto (SAIC Motor Corp.), and billionaire Jack Ma’s Yunfeng Capital.