Stellantis, Honda, Tesla Will Launch Level 3 Autonomous Driving in 2025

Autonomous Driving Competition between carmakers and suppliers is heating up to unlock new revenues and capture market share.

LONDON, UNITED KINGDOM, February 22, 2025 /EINPresswire.com/ -- The race to dominate the autonomous vehicles is heating up in 2025 as more automakers roll out Level 3 autonomous driving systems.

In Level 3-Conditional automation mode the system takes over the driving and monitoring tasks allowing drivers to take their eyes off the road and hands off the steering wheel, but they have to be available to takeover.

Level 3 automated driving could bring new revenues to carmakers from subscriptions and new pricing packages, which automotive suppliers benefit from development of sensors, software, and demand for On-board High-Performance Computing

With major players like Stellantis, Honda, BYD, Tesla, Rivian and Polestar joining Mercedes-Benz and BMW in offering "eyes-off the road" technology, the autonomous driving industry is entering a transformative phase where carmakers can't afford to stay behind. Even though the penetration of Level 3 is still in its infancy, Level 3 systems have more robust perception and could deliver eyes-off the road functionality to drivers, hence enhancing their convenience and potentially making Level 2 systems obsolete.

BMW and Mercedes-Benz have already started the deployment of their Level 3 systems in Germany. In February 2025, Stellantis announced that their Level 3 system is ready for deployment, whereas Honda will launch Level 3 in the Honda 0 series in 2025. Furthermore, Zeekr is testing Level 3 and XPeng’s XNGP will go nationwide in China.

A new report by Auto2x, Autonomous Vehicles Competitor Analysis: Carmakers, Suppliers & Start-ups, sheds light on the strategies, technologies, and market trends shaping this competitive landscape.

Why You Should Read This Report

The Auto2x report is a must-read for professionals across the automotive ecosystem. It provides a comprehensive understanding of:

Strategic trends: How automakers are positioning themselves in Level 2-3-4 autonomous driving features, such as Traffic Jam Pilots or Highway Pilots?

Technological advancements: The rise of innovative systems and sensor technologies to power new features, such as lidar-less autonomy and Generative AI-based ADAS.

Market dynamics: Penetration of advanced driver-assistance systems (ADAS) and autonomous vehicles.

Whether you're part of a strategy team, engineering group, innovation hub, or an investor, this report offers actionable insights into revenue opportunities, system benchmarking, and innovation in sensors and software.

Who Should Read This Report?

This report is designed for professionals looking to stay ahead in the rapidly evolving autonomous driving sector:

Strategy Teams: Identify new revenue streams from ADAS, such as subscription-based services or standard equipment offerings.

Engineering Teams: Benchmark competing systems and develop competitive operational design domains (ODDs).

Innovation Teams: Explore advancements in sensors and software to drive product differentiation.

Investors: Understand market penetration trends and identify high-growth opportunities within the sector.

Key Highlights

1. Strategies:

BYD's Strategy to Expanding Accessibility of ADAS across their line-up

BYD is leading the charge in making autonomous driving accessible across its entire model range. With over 4.4 million vehicles already equipped with at least Level 2 systems, BYD is setting a benchmark for widespread adoption.

Pricing strategies: Subscriptions vs. Standard Fitment

BYD's strategy of including these systems as standard equipment could reshape consumer expectations around pricing and accessibility.

This approach contrasts with premium brands like Mercedes-Benz and NIO, which offer advanced features through subscription models.

2. Technology & Innovations in Autonomous Driving Systems

Operational Design Domains (ODD): Lane coverage and speed. Level 3 Systems are expanding from single-lane Traffic Jam Pilots (TJP) to multi-lane Highway Pilots (HP). However, the latter, requires more robust performance and therefore lidar or other sensors.

In September 2024, Mercedes-Benz announced that they will update the speed limit of the Level 3 Drive PILOT to 95 km/h by 2025, making it the fasted Level 3 system on the market.

BMW 7 Series got certification for Level 2+L3 in Germany. This systems allows a seemless experience from lower to higher speed.

Stellantis claims that ”their STLA AutoDrive Level 3 system enables Hands-Free and Eyes-Off (SAE Level 3) functionality available up to 60 km/h (37 mph), even at night and in challenging weather conditions”. It also enables Level 2 (hands on) and Level 2+ (hands off, eyes on) capabilities at higher speed, including Adaptive Cruise Control and lane centering functions.

Rise of Navigation on Autopilot (NOA)

Urban-level autonomous driving systems are gaining traction, particularly in China. Brands like Li Auto, XPeng, NIO, and Huawei are leading this charge, with competitors such as Zeekr and Leapmotor entering the fray.NOA systems are becoming a key focus for automakers, enabling more seamless urban navigation and enhancing overall user experience.

The technological landscape of autonomous driving is evolving rapidly. Key trends include:

Lidar-less Level 3 Systems: BYD is pushing boundaries with its "God's Eye C" system, which does not rely on LiDAR sensors. This cost-effective approach could democratize access to advanced features. Deliveries of these systems are set to begin in mid-March 2025.

Opportunities in Generative AI for Autonomy: Generative AI and neural rendering could revolutionise simulation for AVs. LLMs and large-scale models are also being used to enable Level 4-Autonomous Driving.

3. Market Dynamics: New Players and Partnerships

The market for autonomous vehicles is witnessing significant shifts:

New Suppliers: Companies like Huawei are partnering with automakers such as BYD to develop cutting-edge systems.

China vs. Germany as key Hubs: China continues to dominate as a hub for innovation in autonomous driving technology. Affordable brands like Leapmotor are entering the market alongside premium players, signaling broader adoption across price segments.

What to Expect in 2025 in Autonomous Driving

As the competition intensifies in 2025, automakers are adopting diverse strategies to capture market share in autonomous driving. From BYD's push for affordability to Mercedes-Benz's subscription-based services, the industry is at a pivotal moment.

The Autonomous Vehicles Competitor Analysis: Carmakers, Suppliers & Start-ups report offers valuable insights into these developments, making it an essential resource for anyone involved in shaping or investing in the future of mobility.

Auto2x analysed the technology roadmaps of key players, including their product portfolio, innovation metrics such as patents and academic research, strategy and business data, and interviews with experts, to capture how players monetise opportunities for growth in Autonomous Vehicles.

Auto2x, Automotive Intelligence & Consulting
Auto2x Ltd
info@auto2xtech.com
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