Mercedes-Benz has received permission from the California Department of Motor Vehicles (DMV) to sell or lease vehicles with its Drive Pilot, a conditional, automated highway driving systems to the public.

As per the permit, Drive Pilot can be deployed only on certain highways, namely highways in the Bay area, Central Valley, Los Angeles, Sacramento, and San Diego. Further, Drive Pilot is only available at speeds of up to 40 mph during daytime hours. 

The system is equipped with Level 3 automated features, where the driver is not required to maintain full vigilance (a hands-free and eyes-off driving system) but must be able to take control if necessary. It uses LiDAR, radar, cameras, and software systems to facilitate automated driving. 

The company is the first to obtain approval to sell/lease vehicles with a Level 3 driving system in California.

Analyst QuickTake: Mercedes-Benz first deployed Drive Pilot in Germany in August 2022 and received approval for the same from Nevada regulators earlier this year as it entered the US market. Today’s permit will help further its position with the Level 3 driving system in the US—a level of autonomy that most autonomous vehicle (AV) developers (including Alphabet’s Waymo and General Motors’ Cruise) tend to avoid, citing dangers that require the driver to be attentive despite the vehicle being able to perform most of the driving tasks. However, Mercedes-Benz is not the only automaker developing Level 3 technologies. In fact, Ford announced plans to develop Level 2+/Level 3 techs earlier this year, while Audi, BMW, and Volvo are also developing their own Level 3 systems.