Mercedes reportedly using Momenta software to spur China comeback

Mercedes-Benz is betting on China's Momenta to help it win back market share in the world's biggest auto market, with plans for fresh investment and at least four future models to use the autonomous driving startup's software, three sources with knowledge of the matter said.

The plans, which have not been previously reported, will make autonomous driving developer Momenta the first Chinese supplier picked by Mercedes to be a primary provider of a key technology and selling point for its products, as intense competition and technological innovation in China force Western automakers to rethink their supply chain strategies.

The German premium automaker has had an investment in Momenta since 2017, but the two companies have yet to publicly announce jointly developed products.

In the years since, the Chinese firm has emerged as one of China's leading suppliers of advanced driver-assisted system (ADAS) features similar to Tesla's full self-driving that can navigate urban traffic with human drivers' supervision.