CHENGDU, Aug. 30 (Xinhua) -- The latest Mercedes-Benz GLE SUV made its global debut at this year's Chengdu Motor Show, with an assisted-driving system jointly developed with Chinese autonomous driving technology provider Momenta.

The new long-wheelbase GLE is also set to later adopt Momenta's R7 World Model, a self-improving physical AI engine. Mercedes-Benz first invested in the Chinese startup in 2017, and their cooperation has expanded in recent years.

For decades, foreign automakers followed a fixed business pattern: introducing overseas-developed models and technologies into China and making targeted adaptations for local consumers. However, as software and artificial intelligence gain growing importance in modern automobiles, this industry dynamic has undergone a notable shift.

Other global automakers such as BMW, Volkswagen and Toyota are also partnering with Chinese companies in the field, as China's fast-moving auto market produces a new crop of tech suppliers.

A NEW SUPPLIER LANDSCAPE

The booming and fast-evolving Chinese market serves as the core driver of this transformation. Once largely confined to vehicles priced above 300,000 yuan (about 44,229 U.S. dollars), advanced assisteddriving features have gradually spread into the 150,000- to 200,000-yuan vehicle segment and, in some instances, even lowertier markets.

At the ongoing Chengdu Motor Show 2026, the 29th edition, in southwest China's Sichuan Province, urban navigation assistance and automated parking -- two of the most capable such functions -- have become standard features on newly launched models.

The shift is taking place as new-energy vehicles (NEVs) take a larger share of China's auto market. According to the China Association of Automobile Manufacturers, NEV sales reached 1.56 million units in July this year, accounting for more than 60 percent of monthly new vehicle sales for the first time.

As NEVs spread across more price segments, Chinese automakers seek to differentiate their products through smartdriving functions.

This rapid adoption, paired with fierce competition among carmakers, has allowed firms including Huawei and Momenta to see their technologies gain wider application across electricvehicle systems, intelligent driving and smart cockpits.

Compounding this shift, a structural mismatch between legacy R&D rhythms and China's fastpaced NEV market also creates growing hurdles for traditional Chinese-foreign joint ventures, for which, a conventional vehicledevelopment cycle once ran 48 to 60 months.

"In NEVs, we indeed did not keep pace with China's overall development speed," said Yang Xian, deputy general manager of FAWVolkswagen's Jetta brand.

FROM CHINA PROJECTS TO GLOBAL AMBITION

For Momenta, teaming up with international automakers within China represents only part of its global ambition.

The company is pursuing overseas expansion along two parallel tracks: tagging along with Chinese automakers such as Chery as they enter foreign markets, and delivering crossborder, global vehicle programs alongside international partners including MercedesBenz, General Motors, Toyota and Hyundai, said Gu Gongyao, Momenta's vice president.

In July, Momenta won approval from Germany's Federal Motor Transport Authority (KBA) for Level 4 autonomousdriving road tests nationwide, a key milestone in its European expansion. Per the standard six-tier autonomous driving classification system, Level 4 vehicles are capable of full autonomous operation within designated scenarios without requiring a human backup driver.

Momenta is not alone in testing how far technologies forged in China's hypercompetitive domestic market can go global. Other Chinese autonomousdriving firms are taking divergent overseas routes.

Baidu's Apollo Go has rolled out fully driverless commercial ridehailing services in Dubai. WeRide runs commercial robotaxi services across the Middle East and has struck plans with Danish mobility provider GreenMobility to launch autonomous sharedmobility services in Denmark. Pony.ai, meanwhile, operates autonomousmobility services with ComfortDelGro in Singapore while advancing robotaxi projects in Dubai and Qatar.

Such ventures, however, also illustrate why global expansion entails much more than simple software exports.

Traffic codes, datagovernance requirements, safety standards and road conditions differ sharply across markets. A system extensively trained and validated on Chinese roads still demands further verification and adaptation before deployment elsewhere, while commercial rollout hinges on securing local regulatory clearance.

Industry observers say the partnership between Mercedes-Benz and Momenta offers one example of how Chinese smartdriving firms are building ties with global automakers and validating their technologies overseas. However, whether this translates into sustained roles within global vehicle programs remains to be seen.