Mercedes-Benz Turns to China: Why Momenta and Horizon Robotics Are Winning the L4 Race in 2026

“German Engineering, Powered by Chinese Code.”

This is no longer a futuristic concept—it is the reality of the automotive industry in December 2025. As traditional Western OEMs grapple with soaring software development costs and delayed timelines, a new pragmatic alliance is reshaping the global mobility landscape.

Today, we analyze two pivotal announcements that confirm China’s dominance in the autonomous driving sector: Mercedes-Benz’s partnership with Momenta and Horizon Robotics’ strategic deal with KargoBot.

1. The Mercedes-Momenta Deal: A Pragmatic Pivot

On December 9, 2025, Mercedes-Benz announced a landmark collaboration with Chinese software developer Momenta to deploy L4 autonomous vehicles in Abu Dhabi.

• The Plan: Starting January 2026, Mercedes-Benz S-Class vehicles equipped with Momenta’s L4 technology will operate as robotaxis in the UAE.
• The Tech: This system allows for “eyes-off, hands-off” driving, a significant leap from current L2+ systems.
• The Context: Facing intense competition in the EV sector and shrinking margins, the German giant has chosen to leverage Momenta’s data-driven “flywheel” approach rather than bearing the full burden of in-house development. This move signifies that speed to market now trumps vertical integration for legacy automakers.

2. Horizon Robotics (Journey 6P): Revolutionizing Logistics

While Mercedes focuses on passenger transport, the logistics sector is witnessing its own revolution. Horizon Robotics, often called the “NVIDIA of China,” has secured a major win with KargoBot (DiDi’s autonomous trucking unit).

• The Powerhouse Chip: KargoBot’s L4 trucks will be powered by Horizon’s Journey 6P chip, capable of 560 TOPS (Tera Operations Per Second).
• Why It Matters: The Journey 6P supports complex Transformer models essential for processing real-time heavy trucking data. This partnership proves that Chinese chipmakers are ready to support mass-scale commercial deployment, challenging Western semiconductor dominance in the automotive sector.

3. The “New Normal” for 2026

These two cases illustrate a clear trend: The decoupling of hardware and software. Western heritage brands (Mercedes, BMW) are retaining their hardware prestige, but the “brain” of the vehicle is increasingly being sourced from China’s robust tech ecosystem. For investors and industry watchers, 2026 will be the year this hybrid model faces its real-world test on the streets of Abu Dhabi and logistics hubs globally.