Level 4 Mercedes-Benz is Working on Fully Autonomous Private Cars

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In the next S-Class from Mercedes-Benz, the driver will likely be allowed to take a nap while driving. The luxury sedan is said to drive fully automatically, as reported by Mercedes partner Nvidia.

Mercedes-Benz would be one of the very few manufacturers to dare to bring extremely expensive Level 4 automation into a private vehicle. Nvidia writes that “the new S-Class will offer an exceptional Level 4 driving experience.” At Mercedes-Benz, this may not yet be confirmed: “For competitive reasons, no details can be published about this,” said a company spokesperson in response to a request from Automobil Industrie.

However, Mercedes-Benz publicly announced a few days ago that they are bringing Level 4 robotaxis to the road based on the new S-Class. According to this announcement, the Stuttgart-based company intends to establish a test robotaxi service with S-Class vehicles in Abu Dhabi in collaboration with Momenta, a Chinese specialist in autonomous driving. Mercedes-Benz holds a stake in Momenta. In these robotaxis, the digital heart of the S-Class expected in 2028 is already beating. According to Mercedes-Benz, the "MB.OS technology of the new Mercedes-Benz S-Class is the key enabler" for the robotaxi project. The company’s own operating system, MB.OS, was recently launched in the new CLA.

Test Drives in Beijing for One Year

At the same time, signs are strengthening for a Level 4 S-Class aimed at private customers. In the context of the Momenta project, the OEM also emphasizes: "This initiative complements Mercedes-Benz's other SAE Level 4 projects, some of which focus on the end customer segment." In Beijing, Mercedes-Benz has been testing highly automated Level 4 driving with two modified S-Class vehicles for over a year. According to Mercedes-Benz, "hard- and software for future automated driving systems for private vehicles is being tested" during these trials.

Doubts About the Business Model

Other OEMs doubt that highly automated models can ultimately be profitably sold to private customers. While Mercedes-Benz (Drive Pilot in the S-Class and EQS) and BMW (Personal Pilot L3 in the 7 Series) both offer Level 3 functions, a spokesperson from BMW explained to Automobil Industrie that the effort required for Level 3 automation is very substantial. "The costs for customers will, therefore, remain high for Level 3 functions for the foreseeable future. In the current market situation, there aren't enough interested parties for efficient scaling of this offering. This is even more true for a customer offering for autonomous driving at Level 4 in urban and/or highway traffic."

Volkswagen is consequently focusing on the robotaxi market with its mid-year launched "production-ready ID Buzz AD" (Level 4 automation with Mobileye technology). Test deployments are underway in Berlin and will begin in Oslo in spring 2026. Stellantis is also focusing on the development of Level 4 vehicles for robotaxi services through collaborations with Nvidia, Uber, Foxconn, the Chinese company Pony.ai, and the Estonian mobility provider Bolt.

Balancing Act on the Edge of Level 3

For private customers, OEMs primarily focus their efforts on maximizing the assistance options available below SAE Level 3. This involves a balancing act to provide drivers with as much comfort and support as possible—without relieving them of their responsibility for operating the vehicle. At Level 2—regardless of how many "+" signs OEMs add after the "2"—the driver always retains full responsibility and must intervene within seconds if the system is overwhelmed.

At Level 3, the driver is allowed to temporarily divert their attention from the driving task and hand over responsibility to the vehicle under certain conditions. However, they must be prepared to take control again promptly when the system prompts them to do so.

Level 4, the robotaxi technology, offers a completely different quality and significantly higher benefits: The "driver" does not have to worry about anything. In designated areas, which can include specific cities or highways, the vehicle operates completely autonomously. And if it encounters a situation it cannot handle, it must find a safe spot to stop and "consult" a human-operated control center for guidance on what to do.

Redundant Systems Drive Up Costs

However, when humans are completely removed as a fallback at Level 4, the vehicle technology must meet entirely different safety requirements. All critical systems must be designed redundantly, starting with the sensors. The Mercedes-Benz CLA, equipped with point-to-point navigation (see below), already has five radar sensors and nine cameras but still operates without lidar. However, starting from Level 3, the safety philosophy of traditional OEMs includes at least one lidar sensor. For example, the VW ID Buzz AD is equipped with 27 sensors, including 13 cameras, nine lidars, and five radars.

However, other sensors and systems in the vehicle must also be designed redundantly. This increases the effort to such an extent that Level 4 currently only seems viable as a robotaxi application, where the elimination of the driver saves enough costs to create a business model. However, at Mercedes-Benz, a cost advantage could arise from higher production numbers if they succeed in building robotaxis and private cars using the same automation technology. According to Chinese media, Xpeng CEO He Xiaopeng also considers this technological parity to be the "right approach."

One can almost feel like being in a Level 4 vehicle in the new Mercedes-Benz CLA. The vehicle features "Level 2++ Point-to-Point Navigation that handles complex urban traffic." The driver must maintain contact with the steering wheel and be ready to intervene at any time. Otherwise, the vehicle will chauffeur them from the starting point to the destination communicated to the navigation system. This function is already available in China and the USA; "Europe will follow as soon as legislation permits," reports Stuttgart. According to Mercedes-Benz, current DCAS regulations do not allow for approval of the substantial and rapid steering movements required in urban traffic. DCAS stands for Driver Control Assistance Systems.

Technology from Momenta or Nvidia

The CLA example illustrates that different technologies may be incorporated into the same models depending on the market. Momenta emphasizes that it developed the driver assistance systems for the version of the new CLA manufactured in China in collaboration with Mercedes-Benz. The OEM explained in response to inquiries that it develops "its systems with support from the best partners to provide tailored software for various markets." At the same time, a company spokesperson underscored: "Our global partner for Advanced Driver Assistance Systems is Nvidia." This likely means that in Europe and the USA, the vehicles will operate with Nvidia technology.

Momenta has become a sought-after partner: In mid-2025, BMW announced that it would develop driver assistance systems for BMW models offered in China in collaboration with Momenta. Together with Uber, Momenta plans to test Level 4 vehicles in the Uber fleet in Munich in 2026—with the goal of expanding to other European cities.

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