BERLIN / SHANGHAI, 24 September 2025 — Mercedes-Benz Group is preparing to invest in Chongqing Qianli Technology Co., an autonomous driving and perception systems firm backed by Chinese automaker Geely, people familiar with the situation say. This move marks a further step in convergence between established legacy automakers and China’s fast-rising autonomous driving ecosystem.
The proposed deal is still under negotiation and has not yet been announced publicly. Details such as the size of the investment, valuation, and the equity stake Mercedes will take are yet to be finalised.
Qianli’s Profile & Strategic Fit
Qianli develops Lidar, sensing and perception stacks, and AI systems tailored for autonomous driving. Its technology is designed to work in complex environments such as urban China, which demands high robustness in perception and edge-case handling. The firm has been among several Chinese autonomous ventures attracting capital and partnerships from domestic and global auto groups.
For Mercedes, investing in Qianli is a strategic alignment: it gives the German automaker access to a Chinese autonomous tech stack, helps it localise development for the world’s largest auto market, and potentially accelerates its capabilities in advanced driver assistance systems (ADAS) and beyond.
This is not the first tie between Mercedes and Geely. The two have a formal joint venture around the “Smart” electric vehicle brand, and Geely has a significant shareholding in Mercedes-Benz Group.
Implications, Opportunities & Risks
On the opportunity side, Mercedes can leapfrog part of the tech development race by tapping into Qianli’s local know-how and scaling potential. It could enable Mercedes to accelerate rollout of autonomous features in China, reduce localization costs, and strengthen competitive positioning vis-à-vis Tesla, BYD, and other China-based tech-automakers.
However, the investment is not without risks. Qianli will need to continue proving its technical credibility, especially in safety validation, regulatory compliance, and real-world performance. Integration with Mercedes’s hardware and systems is nontrivial. Also, valuation expectations may be lofty—investors will scrutinize the terms. Finally, regulatory, intellectual property, and data sovereignty issues may come into sharper focus, especially in China’s evolving regulatory environment around autonomous driving and automotive software.
Broader Trends & Regional Significance
This move reflects a larger global trend: incumbents in the auto industry partnering or investing in hi-tech mobility players to stay relevant. In Asia, China’s autonomous ecosystem has matured enough to attract foreign legacy automakers, reversing the earlier flow of Western tech into China.
In Southeast Asia, such investments may have ripple effects. If the joint Mercedes–Qianli technologies prove successful, they may feed into Mercedes’s exports or local partnerships in ASEAN markets. For regional automakers or parts suppliers, closer access to advanced perception and AI modules may open collaboration or integration opportunities.
