During the 2026 Beijing Auto Show, Momenta held a themed session titled "Momenta R7: The Prologue of Physical AI." Following the event, Momenta CEO Cao Xudong told media that the intelligent driving industry exhibits exceptionally strong economies of scale and first-mover advantages—more pronounced even than those in the semiconductor sector. He explained that software has near-zero marginal costs, allowing unit costs to decrease and user experience to improve simultaneously as scale expands. Additionally, he noted that business development cycles with OEMs are lengthy—typically around three years in China and potentially five to seven years for international automakers. Based on these dynamics, he predicted that ultimately only two to three intelligent driving suppliers will prevail in China, and at most three to four globally, leading to rapid industry consolidation. To date, Momenta has established partnerships with numerous leading global automakers, securing定点 (定点 refers to official project awards from OEMs) for over 200 vehicle models, with more than 70 models already in mass production. Vehicles equipped with Momenta’s intelligent driving solutions have surpassed 800,000 units in sales and are now available in ten markets, including the UK, Norway, Australia, the UAE, and Thailand. On April 25, 2026, SAIC Volkswagen launched its new flagship SUV, the ID. ERA 9X, at the Beijing Auto Show, debuting globally with Momenta’s R7 reinforcement learning world model. Developed to Level 4 standards, this model is defined as a “Physical AI Driver.”