German automaker Mercedes-Benz announced plans to introduce its production-ready Drive Pilot, a conditional, automated highway driving system, in the US by Q4 2023, initially as a subscription service in California and Nevada. The annual subscription for Drive Pilot will start at USD 2,500 in the first year and can be activated through the Mercedes me connect store.

The technology, available on the EQS electric sedan and S-Class, is equipped with SAE 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. The technology will function at speeds up to 40 mph on suitable freeways.

The company plans to expand its availability to more states and 2024 model-year vehicles.

With this, Mercedes becomes the first automaker to offer SAE Level 3 automated driving technology in the US.

Analyst QuickTake: Mercedes-Benz first deployed Drive Pilot in Germany in August 2022 and received approval for the same from Nevada and California regulators earlier this year as it entered the US market. Once the company starts offering Drive Pilot to the public, it will 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 March 2023, while Audi, BMW, and Volvo are also developing their own Level 3 systems.