Racing to match the pace of China’s smart driving market, luxury automakers are shifting gears and increasingly turning to local partners.
36Kr has learned that BMW has partnered with Chinese autonomous driving startup Momenta to co-develop an assisted driving system tailored specifically for the Chinese market. The solution will be integrated into multiple locally manufactured BMW models, including those built on the new Neue Klasse platform.
The system is expected to support a range of driving scenarios, including point-to-point assisted navigation capable of guiding vehicles between parking spaces in different cities.
Previously, BMW’s assisted driving features in China were limited to adaptive cruise control, steering assist, lane changes under speed constraints, speed limit recognition, and partial speed regulation. More advanced features such as on- and off-ramp transitions or traffic light navigation were not yet available, even as many domestic rivals had already deployed them.
According to a source familiar with the matter, BMW executives visited China in late 2024 to test competing assisted driving systems firsthand. That experience marked a turning point.
“After that test drive, they realized BMW’s current R&D model, led by Germany with only functional localization in China, was falling behind,” the source said. “They reported back to headquarters and pushed for sourcing high-level assisted driving tech directly from Chinese suppliers.”
In early 2024, BMW launched a bidding process for a new assisted driving initiative, inviting top Chinese developers such as QCraft and DeepRoute.ai. Momenta ultimately secured the partnership.
Founded in 2016, Momenta has invested heavily in both assisted driving solutions and robotaxi development. It now works with over ten global automakers, with more than 100 production models said to be on the road.
Notably, before BMW, Momenta had already partnered with Mercedes-Benz, another German high-end brand, to co-develop assisted driving systems for the China market.
Advanced features, competitive pricing
High-level assisted driving has become a key differentiator in China’s automotive sector. Domestic brands like Li Auto and Xpeng have rolled out urban navigate-on-autopilot (NOA) capabilities nationwide. Huawei’s Yu Chengdong, who oversees the Harmony Intelligent Mobility Alliance (HIMA), has said the platform now supports Level 3 autonomous driving, pending regulatory approval.
Meanwhile, BYD offers highway NOA-equipped models priced under RMB 100,000 (USD 14,000), and Leapmotor has lowered prices for urban NOA-capable vehicles to below RMB 130,000 (USD 18,200). The dual trend of rising functionality and falling costs is raising the bar, making advanced assisted driving essential for maintaining premium positioning.
BMW’s collaboration with Momenta is a strategic move to stay competitive. By integrating with a local supplier, the company aims to maintain market share in China by accelerating deployment and improving feature sets in upcoming models.
The shift also raises a broader question: Can BMW, a brand long associated with driving performance, reconcile its identity with a move toward automation?
BMW’s head of development, Frank Weber, has previously said the company would not sacrifice vehicle dynamics for hands-free functionality. For instance, the steering system will continue to offer mechanical feedback, avoiding a fully steer-by-wire design.
In the upcoming Neue Klasse models, BMW is integrating powertrain, braking, steering, charging, and energy recovery into a unified control architecture. The Momenta co-developed system will have access to chassis data, allowing for pre-adjustments to suspension damping during lane changes and turns, delivering what BMW refers to as a sense of “precise control.”
While many Chinese automakers are prioritizing high degrees of automation, BMW’s approach remains grounded in driver engagement, marking a distinct position in an increasingly artificial intelligence-driven sector.
Building the Neue Klasse
The Momenta partnership will take shape in BMW’s Neue Klasse lineup, its latest electric vehicle platform. The first domestically produced model, the iX3, is expected to debut in 2026.
Neue Klasse vehicles will feature cylindrical battery cells, 800-volt electrical systems, and a panoramic display interface. These updates are designed to increase driving range by 30% and deliver 300 kilometers of range with just ten minutes of charging.
However, some Chinese EV makers already claim recharging speeds of up to 445 kilometers in ten minutes. As competition intensifies, BMW’s battery improvements alone may not be enough to stand out. The Momenta partnership could provide a crucial edge.
Chinese EV startups have adopted what they describe as end-to-end architectures powered by large AI models, integrating perception, planning, and control into a single neural network. This approach mimics human driving behavior and enables ongoing improvements through continuous data training.
BMW’s transition from rule-based systems to AI-driven solutions is central to its collaboration with Momenta.
According to a company insider, BMW began formal talks with local suppliers in early 2024. “To collaborate, suppliers had to meet our vendor standards and deliver proven results at a compelling price. That’s what helped persuade Germany.”
The turning point came in late 2024, when BMW executives observed firsthand how far Chinese technology had progressed. “They realized German-developed systems were no longer keeping pace with China’s advancements,” the person added.
Mercedes-Benz reached a similar conclusion: its upcoming long-wheelbase electric CLA, set to launch this year, will also incorporate Momenta’s advanced assisted driving system. For global automakers, partnering with domestic suppliers has become the fastest route to remain relevant in China’s smart driving market.
BMW plays the long game
In a separate development, foreign media reported that BMW plans to revive its range-extended powertrain series, starting with a sixth-generation X5, to address charging infrastructure constraints in Europe. It is also evaluating range-extended variants of the next-generation X3 and X7.
This move could also bolster BMW’s prospects in China, where range-extended EVs have become a core driver of luxury sales.
In 2024, Li Auto sold more than 500,000 range-extended L series vehicles. The Aito M9, co-developed by HIMA and Seres, reached 158,000 units, overtaking the BMW X5 as the bestselling model priced above RMB 500,000 (USD 70,000). Seres executive Kang Bo noted that 90% of M9 buyers chose the range-extended version.
“We initially considered partnering with Seres on range-extended EVs, but talks didn’t go smoothly,” a BMW source told 36Kr. “Now the German headquarters is taking the lead, with China providing R&D support. Realistically, the earliest rollout would be 2027 or 2028.”
China remains BMW’s largest single market, accounting for roughly one-third of global sales and driving a significant portion of its profits. As competitive pressure builds, the automaker is working to align more closely with local consumer demands while maintaining its standards for testing and validation.
Whether through revived range extender development or partnerships like the one with Momenta, BMW is signaling a clear intent to adapt. The century-old brand is repositioning itself for a new chapter in the world’s most competitive automotive landscape.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Xu Caiyu for 36Kr.