Mercedes-Benz brings autonomous driving to city streets with new AI-powered system

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Mercedes-Benz is launching MB.DRIVE ASSIST PRO in the US, bringing autonomous driving capabilities to city streets for the first time in a production vehicle outside of Tesla. The advanced driver-assistance system navigates urban environments, handles intersections, obeys traffic lights, and manages parking—all while requiring driver supervision. Priced at $3,950 for three years, it debuts on the new CLA and directly competes with Tesla Full Self-Driving.

Mercedes-Benz Expands Autonomous Driving Beyond Highways

Mercedes-Benz announced it will launch MB.DRIVE ASSIST PRO in the US market later this year, marking a significant expansion of autonomous driving capabilities to city streets

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. The advanced driver-assistance system enables vehicles to operate autonomously from parking lot to destination, navigating city intersections, making turns, and obeying traffic lights—all under driver supervision

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. This positions Mercedes-Benz as the second automaker after Tesla to offer such capabilities on urban roads, directly competing with Tesla Full Self-Driving in a market where most manufacturers limit self-driving features to highways

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Source: InsideEVs

Source: InsideEVs

The system debuts on the Mercedes-Benz CLA, the brand's first vehicle built on the MB.OS platform, priced under $50,000

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. Mercedes offers the technology at $3,950 for three years, with monthly and yearly subscription options to be disclosed later—significantly undercutting Tesla's $8,000 one-time purchase or $99 monthly subscription

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Level 2 Automated Driving Powered by AI Model and Sensors

MB.DRIVE ASSIST PRO represents what engineers describe as "Level 2 ++" automation, requiring drivers to keep hands on the wheel and remain alert at all times

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. During demonstrations on San Francisco streets, the system handled construction zones, double-parked cars, and speed bumps without driver intervention, though it requires drivers to maintain constant readiness

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The system relies on approximately 30 sensors, including 10 cameras, five radar sensors, and 12 ultrasonic sensors

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. These sensors feed data to a computer capable of processing up to 508 trillion operations per second

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. Magnus Östberg, chief software officer at Mercedes-Benz, explained the company has "completely elevated our autonomous driving stack" from rule-based systems to an end-to-end AI model

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NVIDIA DRIVE AV Software and Safety Architecture

The NVIDIA DRIVE AV software makes its production debut with this system, integrating AI infrastructure and accelerated compute through Nvidia's Orin processor, which handles perception and path planning

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. The architecture employs a dual-stack approach: an end-to-end AI driving stack running parallel with a classical safety stack built on Nvidia's Halos safety system

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This redundant approach tokenizes input and output trajectories, with a rules-based safety guardrail catching any AI trajectory mistakes before execution

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. Lucas Bolster, Mercedes' manager of automated and assisted driving, noted the system "runs two AI models in parallel" to achieve safety goals

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. Ali Kani, vice president of automotive at Nvidia, stated "there's not a passenger car they can drive this safely" compared to what Mercedes demonstrates

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Navigates Urban Environments With Continuous Learning

The system's ability to handle city streets stems from AI training on real-world data from Mercedes vehicles currently on the road, combined with simulation models

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. Unlike earlier autonomous vehicles that required training on every specific route, the AI model allows MB.DRIVE ASSIST PRO to operate on unfamiliar roads and learn driver preferences over time

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Source: Ars Technica

Source: Ars Technica

The system supports over-the-air updates for future improvements, with Mercedes officials indicating updates could arrive quarterly

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. It reads traffic lights, detects stop signs, slows for speed bumps, and manages automated parking in tight spaces

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. Given a destination, the system knows which lanes are needed ahead of time and handles point-to-point urban navigation

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Competing With Tesla While Prioritizing Safety

Mercedes' entry into urban autonomous driving directly challenges Tesla's dominance in this space, though with a markedly different safety philosophy

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. While Tesla's Full Self-Driving allows hands-free operation, Mercedes requires constant hands-on wheel contact, arguing this reduces reaction time in urban environments where pedestrians, cyclists, and unexpected situations present greater challenges than highways

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Source: AIM

Source: AIM

The system has already launched in China and recently contributed to the Mercedes-Benz CLA earning a five-star safety rating from Euro NCAP

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. Mercedes' approach contrasts sharply with Tesla's—employing redundant sensor modalities rather than cameras alone, and avoiding features like speed limit violations

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Investors view autonomous technology as a potential long-term revenue driver for automakers, and Mercedes' push shows how software advances are moving the technology from limited testing toward commercial rollout

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. The system's success could accelerate broader industry adoption of urban autonomous driving while establishing new safety standards for Level 2 automated driving systems operating on city streets.

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