Core Insights - Mercedes-Benz is accelerating the implementation of smart driving technology in the Chinese market through deepening collaboration with Chinese tech company Momenta [1] - The end-to-end intelligent driving assistance system developed in partnership with Momenta will first be featured in the all-electric CLA model set to be produced this fall [1] - By the end of 2024, Mercedes-Benz plans to invest approximately $75 million in Momenta and aims to launch at least four models equipped with Momenta's Advanced Driver Assistance System (ADAS) software in the Chinese market starting in 2025 [1] - Mercedes-Benz became the first international automaker to invest in Momenta back in 2017, with both teams working together to develop a new intelligent driving assistance system tailored to China's specific traffic conditions and driving scenarios [1]

Core Viewpoint - The BBA (BMW, Benz, Audi) group continues to face profit declines in the first half of the year, with Audi being the only company to report revenue growth, while Mercedes-Benz experiences the largest profit drop [1][2]. Financial Performance - BMW reported revenue of €67.7 billion, a year-on-year decline of 8%, with net profit dropping 29% to €4 billion [1]. - Mercedes-Benz's revenue was €66.38 billion, down 8.6%, with net profit falling 55.8% to €2.69 billion [1]. - Audi's revenue increased by 5.3% to €32.57 billion, but net profit decreased by 37.5% to €1.346 billion [1]. Market Performance - Sales in the Chinese market saw significant declines, with BMW, Mercedes, and Audi selling 318,000, 293,000, and 288,000 units respectively, representing year-on-year drops of 15.5%, 14%, and 10.2% [2]. - BMW and Audi experienced some sales growth in European markets, while Mercedes-Benz faced larger declines in both profit and sales [2]. Strategic Adjustments - Audi and Mercedes have adjusted their electric vehicle strategies, with Audi retracting its plan to cease internal combustion engine development by 2033, and Mercedes shifting its focus to a dual development strategy for both fuel and electric vehicles [3]. - BBA is accelerating its electric vehicle transition in China, collaborating with local partners to enhance their offerings and efficiency [3][4]. Impact of Tariffs - Audi's CFO indicated that U.S. tariffs and increased transformation costs are major contributors to profit declines, with losses estimated at €600 million due to tariffs [5]. - Mercedes-Benz warned that tariffs have negatively impacted sales, predicting a significant drop in annual revenue compared to last year [6]. - BMW anticipates a 1.25 percentage point decline in EBIT margin by 2025 due to tariff-related factors [6]. Regional Sales Trends - In North America, BMW saw a slight increase in sales, while Mercedes-Benz and Audi experienced declines of 9% and 6% respectively [7]. - Audi is considering building a factory in the U.S., while BMW is exploring capacity expansion at its Spartanburg facility [7].

Group 1 - BMW announced a partnership with Chinese tech company Momenta to develop a new generation of intelligent driving assistance solutions tailored for the Chinese market [1] - The collaboration will leverage AI models to address unique travel scenarios and user needs in China, providing comprehensive scene coverage and point-to-point navigation assistance [1] - The intelligent driving assistance system will first be integrated into domestically produced BMW models [1] Group 2 - Momenta is a leading domestic supplier of intelligent driving assistance solutions, with strategic partnerships with major automakers like Mercedes-Benz, Audi, and Toyota [2] - In the urban NOA (Navigate on Autopilot) supply chain market, Momenta holds a 60% market share from January 2023 to October 2024, while Huawei's HI model accounts for nearly 30% [2] - Luxury brands like BMW, Mercedes-Benz, and Audi (BBA) are facing challenges in the Chinese market, as local brands like AITO and Li Auto are rapidly gaining market share in the premium segment due to their intelligent features [2] Group 3 - Foreign automakers have generally relied on European logic for their vehicle systems in China, leading to outdated navigation experiences [3] - In response to the cooling electric vehicle market, foreign companies are beginning to collaborate with local firms to enhance their vehicle systems and map services [3] - The rapid development of local suppliers in chips, software algorithms, and intelligent cockpits has prompted foreign automakers to deepen partnerships with local intelligent driving assistance providers to remain competitive in China [3]