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BMW is taking on Tesla’s FSD with urban driver assist starting in 2027

BMW is taking on Tesla’s FSD with urban driver assist starting in 2027

BMW will bring navigation-guided city driving to select models via software updates in 2027, taking on Tesla’s FSD while facing growing scrutiny over Level 2 driver safety.

BMW will bring navigation-guided city driving to select models via software updates in 2027, taking on Tesla’s FSD while facing growing scrutiny over Level 2 driver safety.

is transportation editor with 10+ years of experience who covers EVs, public transportation, and aviation. His work has appeared in The New York Daily News and City & State.

BMW says that it will expand its navigation-guided, partially automated driving capabilities into urban environments starting in 2027, launching first in Germany with other markets to follow.

The new system can help steer, speed up, and slow down the vehicle on both highways and city streets using its built-in GPS navigation. While driving in town, it can assist with changing lanes, making turns, yielding to other cars, and driving through roundabouts. But as a Level 2 driver assist system, it still requires drivers to keep their eyes on the road and stay ready to take over at any moment. On the highway, BMW will allow drivers to remove their hands from the steering wheel — but on local roads, they’ll need to keep their hands on the wheel.

BMW is the latest automaker to commit to releasing a partially autonomous city driving feature to its customers, as the industry races to keep up with Tesla and its Full Self-Driving (FSD) system. BMW, in particular, recently introduced its next-generation Neue Klasse platform, which includes a driver assist system partly powered by Qualcomm’s technology. And with hands-free highway driving now widely available in many mass-market vehicles, the next frontier is a safe and capable city driving feature that rivals FSD.

BMW says its system works cooperatively with drivers rather than fighting their control, which means they can steer, brake, or speed up at any point to adjust their driving without shutting the system off. At the same time, the car shows what it sees and what the assistance system is doing right in your line of sight through the heads-up display and in a clear 3D map on the main dashboard screen.

The necessary cameras and sensors already come built into models like BMW’s 3 Series, 7 Series, X5, iX3, and iX4. BMW can activate the feature through an over-the-air software update. The system follows new European safety rules that let cars suggest and make automated driving moves on city streets for the first time. BMW says that outside experts have already road-tested the setup and confirmed it meets the technical standards, with final official government approval expected in early 2027.

With more cars equipped with partial automation hitting the road, safety researchers are growing increasingly worried about driver attention and the potential for these systems to cause crashes. There is compelling evidence that, regardless of the company, most driver-assist systems are less safe than normal human driving. Drivers tend to develop an overreliance on these systems to drive the car for them — even after a short period of use. And when it’s time to take back control of the vehicle, their reaction times are slower than what’s considered safe.

BMW is entering risky territory with the adoption of a Level 2 driving feature. Much like Tesla, the company is emphasizing that drivers remain responsible for the vehicle even while using the partially autonomous system in urban environments. Tesla does the same for its FSD feature, but some customers have successfully argued in court that the company bears some responsibility for crashes when they occur.

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Toyota will assemble Waymo-equipped bZ4X electric SUVs directly on its factory line in Japan ahead of planned robotaxi rollouts in Tokyo and the UK.

Toyota will assemble Waymo-equipped bZ4X electric SUVs directly on its factory line in Japan ahead of planned robotaxi rollouts in Tokyo and the UK.

is transportation editor with 10+ years of experience who covers EVs, public transportation, and aviation. His work has appeared in The New York Daily News and City & State.

Waymo announced today that it will use Toyota bZ4X electric vehicles that are assembled in Japan for a robotaxi service in Tokyo. The news builds on the strategic partnership between Waymo and Toyota which was first announced in April 2025.

The robotaxis will be built entirely under one roof at Toyota’s Takaoka plant in Toyota City, Aichi Prefecture, Japan. Instead of building regular cars and modifying them later, the factory will install Waymo’s self-driving sensors and computers right on the assembly line as each car is made.

A team-up between the world’s largest automaker and the world’s leader in autonomous driving obviously has huge implications. Currently, Waymo uses two vehicle models on the road today — the Jaguar I-Pace and Ojai based on the Zeekr RT — with a third based on the Hyundai Ioniq 5 set to deploy soon. By adding the bZ4X, Waymo is attempting to prove that its autonomous driving technology is compatible with a wide range of vehicle types. Waymo has long positioned itself as a software and systems supplier — the “Waymo Driver” — rather than an automaker.

A team-up between the world’s largest automaker and the world’s leader in autonomous driving obviously has huge implications

This also represents a shift in terms of how Waymo acquires and modifies the vehicles that end up in its fleet. Up until now, the company was doing things the hard way by buying a finished car from a factory, shipping it to a separate facility, and retrofitting it with sensors, computers, and extra wiring. The decision to build the sensor suite and compute into the bZ4X on Toyota’s own assembly line could help eliminate redundant labor, bespoke brackets, and secondary shipping — and possibly bring down costs for Waymo.

Waymo says it will begin initial testing and validation in Japan starting next year. Following that, the new vehicles will roll out to the United Kingdom, in addition to other international markets, for robotaxi operations.

Waymo also says it is continuing to explore integrating its technology into Toyota vehicles for personally owned autonomous vehicles. And the company is working with Woven by Toyota, the automaker’s software and mobility spinout, to use Waymo’s operational and safety telemetry to improve road safety across general vehicle fleets and traffic infrastructure.

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