Mercedes-Benz Group is planning to acquire a minority stake in Chongqing Qianli Technology, a company that specialises in autonomous driving systems, reported Bloomberg, citing sources.
The sources indicated that the German automotive giant is looking to enhance its software capabilities within the Chinese market through this investment in the Shanghai-listed firm.
The potential partnership could be made public as early as this week, with Qianli currently valued at approximately 59.5bn yuan ($8.35bn).
Zhejiang Geely Holding Group, which is one of the tech firm’s key backers, is said to have been instrumental in facilitating discussions between Mercedes-Benz and Qianli.
Geely has integrated its autonomous-driving assets into Qianli, aiming to establish the company as its primary hub for the development of intelligent driving technologies, the sources added.
While Mercedes-Benz has refrained from commenting on the matter, neither Qianli nor Geely has responded to requests for a statement, the news agency said.
Should the deal proceed, Qianli is anticipated to collaborate with Mercedes-Benz on research and development initiatives, as well as provide technology for the automaker's forthcoming models in China.
The investment is indicative of the growing relationship between Geely and Mercedes-Benz, with the two also engaging in preliminary talks regarding potential collaboration on combustion engine projects.
German automakers are recalibrating their strategies in China, seeking deeper local partnerships and launching vehicles designed specifically for the market, in an effort to compete with domestic brands.
The luxury EV segment has seen tepid demand amidst intense competition that has led to price reductions for mass-market models, Bloomberg said.
In August 2025, it was reported that Mercedes-Benz's pension trust was set to divest its roughly $346m shareholding in Nissan Motor, which represents a 3.8% ownership in the Japanese car manufacturer.
Furthermore, last year, Maxwell Zhou, CEO of Chinese autonomous driving startup DeepRoute.ai, expressed ambitions to implement the company's self-driving technology in up to 200,000 vehicles by the end of 2025.
This includes plans for ten new models, among which is a vehicle from the Smart brand, co-owned by Geely and Mercedes-Benz.
