Consumer Concerns Rise as Mercedes CLA Adopts Chinese Self-Driving Tech

Mercedes CLA electric sedan
Equipped with Chinese self-driving technology
Add Chinese batteries

Mercedes-Benz, Germany’s leading premium brand, introduced the CLA electric sedan concept car last year. While Mercedes-Benz plans to launch the CLA electric sedan in April 2025, various controversies are already continuing.

Previously, the design of the CLA concept car was criticized for overusing the Mercedes-Benz symbol, the three-pointed star, on the grille and headlamps. This time, it is said that the CLA electric sedan will be equipped with a self-driving solution from a Chinese supplier, causing controversy among consumers. Most consumers responded that they could not trust China’s level of technology.

A new company established 8 years ago
Momenta’s self-driving technology will be applied

Chinese automobile media CarNewsChina reported on June 6, 2024, that Mercedes-Benz plans to install Chinese startup Momenta’s intelligent driving solution in its CLA electric sedan. Mercedes-Benz will be the first automaker to adopt Momenta’s solution.

Through Momenta’s advanced intelligent driving solution, equipped with a cutting-edge system, Mercedes-Benz plans to provide driver assistance functions in the city for the first time within the brand. Momenta, which provides self-driving solutions to Mercedes-Benz, is a Chinese startup that was founded in 2016 and is only eight years old. Although it is a new company, it has been evaluated as one of the companies that stands out in the intelligent self-driving industry in China.

Mercedes-Benz continues to invest in Momenta
General Motors has also invested

Mercedes-Benz has been steadily investing in Momenta in China for seven years. In 2017, a year after Momenta was founded, Mercedes-Benz participated in the B funding round to raise funds for Momenta. It made additional investments by participating in the Series C round in 2021. It appears that they have already been watching the possibility of Momenta for quite some time.

Meanwhile, other companies investing in Momenta include US General Motors, China’s Shanghai Automotive Industry Corporation Group, and several businessmen, including Jack Ma, chairman of Alibaba Group. In China, Huawei, Nio, Xpeng, and Xiaomi have already competed fiercely in the related market by providing advanced driver assistance features.

20% of Mercedes-Benz Owned by China
Concerns Over Application of Chinese Technology

On the other hand, Mercedes-Benz only applies partial self-driving on the highway by linking the level 2 driving assistance system and automatic lane change (ACL) function. Meanwhile, it was reported that Mercedes-Benz plans to install Chinese electric vehicle maker BYD’s Blade LFP battery in the CLA’s entry-level trim.

Li Shufu, founder and CEO of China’s Geely, owns a 10% stake in Mercedes-Benz. Beijing Automotive Industry Holding Co. Ltd, a Chinese state-owned enterprise, also owns a 10% stake. Therefore, 20% of the company is owned by Chinese companies. While criticism continues that Mercedes-Benz is using Chinese technology excessively, reactions also ask whether Chinese technology can be trusted.