Volkswagen and Bosch team up to develop Level 2 autonomous driving software that enables hands-free driving

Germany's most renowned automobile manufacturing company, Volkswagen's software subsidiary Cariad and German's multinational engineering and technology company Bosch are strategically partnering to develop software for automated driving Volkswagen's cars. It is said that both the companies will develop Level 2 autonomous driving software that enables hands-free driving in cities, rural areas, and various other motorways. They are also planning to build a Level 3 system for driverless cars.

Volkswagen and Bosch have bundled their software operations to strengthen their offering in the face of competition, especially from companies like Tesla and Alphabet, which are increasingly venturing into the autos sector. Volkswagen's Cariad aims to supply about 60 percent of software in Volkswagen vehicles by 2025, which is almost 10 percent higher since the unit was founded in 2020.

Both the companies are in talks to instrument Level 2 software in Volkswagen vehicles by the end of 2023. Bosch and Volkswagen earlier had partnered to set up a joint venture which aimed to equip battery cell factories with machinery. Either company did not disclose how much they would invest in either deal.