Mercedes-Benz will soon roll out a smart driving system in China in partnership with Chinese autonomous driving startup Momenta, starting with the electric CLA sedan due this fall.

The system, jointly developed using Momenta's "Flywheel" large AI model, will enable point-to-point assisted driving on highways, city streets and parking lots, the companies said Wednesday.

The technology will later expand to other Mercedes models sold in China.

The system draws exclusively on Chinese driving data and was fine-tuned by teams in China and Germany to meet Mercedes' safety and performance standards while reflecting local habits, said the companies.

They said the system has undergone millions of kilometers of on-road and simulated testing across Chinese cities, including trials in heavy traffic, extreme weather and complex road scenarios, according to the companies.

"We are strengthening our in-house capabilities while deepening cooperation with China's leading tech firms," said Drummond Jacoy, senior executive vice-president at Mercedes-Benz China.

"Starting with the new CLA, we will deliver safer, smarter and more intuitive driving experiences tailored to Chinese customers."

Momenta Chief Executive Officer Cao Xudong said the collaboration combines Mercedes' century of engineering with Momenta's cutting-edge AI.

"The rigor and speed of Mercedes' standards set a benchmark for the industry," he said.

Momenta, a pioneer in end-to-end autonomous driving, has already deployed its technology in mass production for assisted driving. Mercedes was the first global carmaker to invest in Momenta back in 2017.