- Mercedes and BMW are focusing on bridging the gap between Level 2 and 3 autonomous driving by ensuring that the transition will occur under a more practical and accessible middle ground for customers.
One focus of the ongoing race in the automotive landscape centers on advancing autonomous driving technology. Leading the charge are rival European car manufacturers Mercedes-Benz and BMW.
It should be noted, however, that the automakers are not just centered on introducing full autonomy. Instead, they are taking things on a measured approach, starting with bridging the lucrative void between the current Level 2 systems and Level 3 capabilities for a more practical and accessible middle ground.
The Appeal of the “Plus”
In Munich’s recent IAA Mobility, BMW and Mercedes-Benz unveiled new models featuring sophisticated, upgraded Level 2 systems. These systems offer greater vehicle control than their predecessors, but at a more affordable price than a completely hands-off, eyes-off Level 3 setup.
While there is no official industry classification, these systems are commonly called “Level 2 Plus” or “Level 2 Plus Plus,” depending on their features. Level 2 Plus typically allows for hands-off highway driving and automatic lane changes, while Level 2 Plus Plus enables a vehicle to navigate urban environments.
The crucial distinction is that regardless of the number of “pluses,” the driver always remains responsible for the vehicle. This shift in focus signals a major market pivot away from Level 3.
The Obstacles to Full Autonomy
Both Mercedes and BMW already offer level 3 autonomy, which allows a driver to disengage from driving in specific situations. However, its implementation is limited to expensive, high-end vehicles and can only be activated in a narrow range of scenarios.
The high cost of ensuring the redundant safety systems required for Level 3 and its restricted use has made it a less attractive option for mass-market adoption. This is why some automakers, like Stellantis, have canceled their plans to roll out Level 3 technology, deeming the expense too great for the limited utility.
Experts in the industry predict that while Level 3 will exist, its market volume will be significantly smaller than the more accessible and practical Level 2 Plus Plus systems.
A Rapidly Evolving Landscape
The development of assisted driving technology is moving rapidly, partly fueled by a push from Chinese automakers who view it as a key competitive advantage. This has created a scenario in Europe that mirrors China’s from a few years ago, where Level 2 Plus systems are becoming a major selling point.
In fact, some analysts argue that once European customers experience a well-functioning Level 2 Plus system that goes beyond basic safety functions, its adoption will soar. Legislation, such as the new UN regulation on driver assistance systems reinforce such sentiment, which provides a clear framework for automakers to introduce these advanced features.
For instance, BMW’s Ride Pilot system has become the first to be certified under these new rules.
Shifting Customer Perception and Business Models
Despite the technological advancements, a significant hurdle remains: customer acceptance. Many drivers have been resistant to mandated, and often poorly functioning, advanced driver assistance systems (ADAS).
The key to overcoming this resistance is precision. As the quality of these systems improves, customers are more likely to appreciate and use them.
Another point of contention is how customers will pay for these features. Some automakers, particularly in China, are standardizing the necessary hardware and offering the features for free.
In contrast, companies like Ford, Mercedes, and Tesla are exploring subscription-based models to unlock ADAS features. Fortunately, the cost of ADAS is rapidly falling as automakers move toward software-defined platforms. This will make these sophisticated systems more standard on vehicles and, in turn, increase customer acceptance.
