26 March 2025
More OEMs Expected to Push into Level 3 Autonomy
Article Summary
Level 3 autonomy could see a significant surge over the next five years as more automakers introduce this advanced technology in their upcoming models.
Level 3 autonomy could see a significant surge over the next five years as more original equipment manufacturers introduce this advanced technology in their upcoming models.
Stellantis announced the readiness of its in-house developed STLA AutoDrive 1.0, a Level 3 automated driving system enabling hands-free and eyes-off operation at speeds up to 60 km/h (37 mph). This positions Stellantis alongside Mercedes-Benz and BMW in the Level 3 race. S&P Global Mobility expects the Jeep Wagoneer to be the first vehicle to offer this tech, with Alfa Romeo and Maserati expected to follow.
STLA AutoDrive operates at speeds up to 60 km/h, with potential upgrades via over-the-air (OTA) updates to increase the maximum speed to 95 km/h (about 60 mph), matching the Mercedes-Benz Drive Pilot (available on S-Class and EQS) that debuted at the end of 2022 and is now in its second generation. Mercedes-Benz updated its speed from 60 km/h to 95 km/h for Level 3 systems via OTA updates with the same hardware. The off-road automation capabilities for select Stellantis models are also under consideration.
Stellantis said STLA AutoDrive can be adapted for global markets across Stellantis-branded vehicles. We expect the premium models (Jeep, Alfa Romeo, Maserati) will feature Level 3 autonomy, integrating an advanced sensor suite, including lidar, cameras and additional sensors. Other more affordable variants will offer Level 2+ (hands-off, eyes-on) autonomy with simpler hardware or with the same hardware offering an option to update to Level 3 via OTA updates.
The company’s broader strategy includes integrating STLA AutoDrive with its tech ecosystem (STLA Brain and Smart Cockpit) and advancing its vision for software-defined vehicles.
Chinese OEMs preparing to offer Level 3 autonomy
Premium automakers such as BMW and Mercedes-Benz have already launched Level 3 autonomy systems in Europe and the United States. BMW launched its Personal Pilot Level 3 system in March 2024, available in the BMW 7-Series, which combines Level 2 and Level 3 capabilities, offering hands-free driving up to 60 km/h and semi-automated highway driving at 130 km/h.
Chinese automakers like BYD and XPeng are also rapidly advancing in autonomous driving technology. While no Chinese OEM is offering Level 3 autonomy today, multiple firms — BYD, Zeekr, XPeng, Li Auto and NIO — are poised to launch Level 3 systems in 2025, contingent on regulatory approvals and technical validation.
Zeekr and XPeng are the most vocal about their Level 3 plans, with Zeekr targeting April 2025 for a public debut, and XPeng planning to launch quasi-Level 3 capabilities in mid-2025 and true Level 3 by the end of 2025. Li Auto’s Level 3 system, powered by its MEGA OTA 7.0 intelligent driving platform, will likely be ready for public release later in 2025.
Similarly, NIO has regulatory approval to test Level 3 and Level 4 technologies in mainland China but has not yet integrated Level 3 into production vehicles.
BYD has obtained mainland China’s first Level 3 assisted-driving testing license but has not yet commercialized Level 3 in production vehicles. Its "God’s Eye" system is classified as Level 2+ (hands-off, eyes-on), although it aims to expand Level 3 capabilities via OTA updates by 2025.
Deployment of STLA AutoDrive
The initial launch of STLA AutoDrive is expected to be in the US market, likely in California and Texas, followed by the EU (Germany and perhaps France and Italy) once the European-type approval is obtained in compliance with Automated Lane Keeping Systems (ALKS) regulation.
The European autonomous vehicle testing landscape features a blend of common and distinct regulatory strategies. OEMs must comply with the EU-level regulatory framework that is applicable in the EU in terms of vehicle regulations and road safety such as the type approval framework, General Safety Regulation 2 (GSR-2), and other legislation related to the deployment of ITS and privacy and data protection as well as national-level testing regulations in force in European member states.
In Europe, BMW and Mercedes-Benz have already secured EU approval in compliance with the ALKS regulation. Stellantis is in the process of obtaining it. This is a mandatory requirement for deploying Level 3 autonomous vehicles in Europe. In Europe, the Level 3 option is sold only in Germany.
S&P Global Mobility’s team of analysts has extensive experience across the global automotive supply chain, with backgrounds in technical, strategic, and commercial roles at OEMs and suppliers. We provide the industry’s best data and analysis across nearly every vehicle domain.
This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.