This huge car company just dumped self-driving tech due to low demand: report

Stellantis, parent company of Jeep, Ram, Peugeot and Leapmotor, has reportedly put its ‘AutoDrive’ self-driving software on hold over concerns there is no demand for it among buyers.

A report by Reuters cites Stellantis insiders who told the publication the AutoDrive system - which is said to be capable of Level 3 driving autonomy (that is, hands off-self driving) - has been “shelved” despite being ready for deployment in production vehicles.

The insiders told Reuters the company had identified “limited market demand” for the self-driving technology despite it being a previous core part of the brand’s software strategy under the previous CEO, Carlos Tavares.

Read more about

According to those who spoke to Reuters, Stellantis would instead shift to relying on suppliers for self-driving technology in the immediate future as it aims to cut costs amid falling sales.

It is not the first time a big automaker has backtracked on autonomous vehicle plans, with General Motors backing out of its Cruise robotaxi division in 2024 over concerns costs were too high and because it's not a core part of GM’s business.

Similarly, Ford and Uber have cut funding to robotaxi-style programs.

These developments have seemingly not deterred the biggest voice for these technologies, Tesla, which is still committed to the fully self-driving Robotaxi as well as its Full Self Driving (FSD) suite which is sold on vehicles in Australia as a $10,100 option.

Tesla Cybercab

Tesla claims the full self-driving suite will enable its cars to drive themselves “almost anywhere with minimal driver intervention", although this comes with the caveat that use of the tech is pending regulatory approval.

As traditional automakers struggle with new ground on this technology, Chinese manufacturers are making inroads, much like they are for electrified and hybrid vehicles. Multiple systems from several automakers are already competing in on-road tests in China, with leading examples like BYD’s ‘God’s eye’ and Geely’s ‘G-Pilot’ already being used in geofenced areas in certain cities.

BYD plans to roll its suite out across its whole range of vehicles as standard in a ploy to train its self-driving model to be more accurate than the competition. Meanwhile, European and American automakers are hoping users will pay a subscription fee for autonomous technology as a new revenue source in the future.

Stellantis AutoDrive

One advantage Chinese autonomous vehicles may have is the more widespread deployment of vehicle-to-infrastructure systems, which allow autonomous vehicles to talk to things like traffic lights and other vehicles to determine lane or route choices and travel at appropriate speeds around road hazards.

However, in the primary markets where Stellantis plays - Europe and the US - there's a more complex regulatory and legal framework in which the vehicles have to play, and that may continue to stifle investment in the tech.