In an effort to compete with Tesla and Chinese newcomers, Mercedes-Benz announced that it is partnering with Google on navigation and would provide supercomputer-like performance in every vehicle equipped with automated driving sensors.

The automaker forecasts software-enabled sales to grow to a high single-digit billion euro amount by the end of the decade from the more than one billion euros ($1.06 billion) it generated in 2022.

As a percentage of overall income, this estimate is more conservative than those made by companies like Stellantis and General Motors.

Cars produced on Mercedes' future modular architecture platform will have several autonomous driving sensors and so-called hyperscreens that span the entire cockpit.

Level 3 driving permits a driver to take their eyes off the road on specific roads as long as they can regain control if necessary. Mercedes-Benz has acquired certification for this technology in Germany and Nevada in the United States.

Mercedes-Benz is switching from a piecemeal strategy of integrating software from numerous suppliers to a core-controlling approach. In its presentation on Wednesday, however, the business emphasized that its plan was to collaborate with companies like Nvidia for autonomous driving and Google for navigation.

As part of the Google agreement, Google Maps will be branded with the Mercedes logo and offer users automatic rerouting, traffic updates, and YouTube access while the vehicle is parked or in Level 3 autonomous driving mode.

Also, Google and Mercedes-Benz decided to investigate expanding their cooperation using Google Cloud data and AI tools.

Several automakers, like Ford, General Motors, Renault, Nissan, and Nissan, have integrated a full suite of Google services inside their cars, including Google Maps, Google Assistant, and other tools.

Mercedes owns a modest share in the self-driving sensor company Luminar Technologies Inc., which said that it had reached a multi-billion dollar agreement with the automaker to integrate its sensors into a variety of its vehicles by the middle of the next decade.