Autonomous Driving Laws 2026: Is Hands-Off Driving Legal?

2026 Autonomous Driving Regulation Overview: Is "Hands-Off" Driving Legal?

Key Takeaways:

- "Hands-off" driving is legally permitted in some markets, but strictly limited to certified Level 3 systems on approved highways.
- Most modern vehicles, including current XPENG models in Australia, operate under Level 2 regulations, requiring the driver to keep their hands on the steering wheel.
- The primary difference between Level 2 and Level 3 is legal liability; at Level 3, the vehicle assumes control, while at Level 2, the driver remains fully responsible.
- XPENG vehicles are equipped with advanced hardware (cameras, radar, ultrasonic sensors) designed to support future software updates as Australian regulations evolve.
Is "hands-off" autonomous driving legal? Yes, but only under strict conditions. National legal frameworks permit Level 3 autonomy on approved highways for electric vehicles officially certified by the relevant approval authority.
However, the vast majority of advanced driver assistance systems (ADAS) currently available, including those from XPENG — one of Australia's leading Chinese EV brands — are classified as Level 2. At Level 2, the system provides active steering and speed control, but you must keep your hands on the wheel and remain fully responsible for the vehicle at all times.

Level 2 vs. Level 3 Autonomy: What's the Difference

Level 2 is an assistance system where the driver remains in complete control and legally responsible — the reality for most electric cars on the road today. Level 3 is conditional automation where the vehicle handles the driving task entirely, allowing the driver to take their hands off the wheel until prompted to intervene.
- At Level 2 (Partial Automation), the car can automatically steer, accelerate, and brake in specific scenarios, such as highway cruising. Despite these capabilities, the driver must constantly monitor the road.
- At Level 3 (Conditional Automation), the legal framework shifts. The driver can legally remove their hands from the steering wheel and divert their attention. However, the driver must remain awake and ready to take over driving duties within a few seconds if the system encounters a situation it cannot handle.

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When is "Hands-Off" Driving Legal?

Hands-off driving is only legal if your vehicle has a homologated Level 3 system and you are driving on approved stretches of the highway. The system will clearly indicate when it is safe to engage this mode.
The relevant approval authority tightly regulates where and how Level 3 autonomous driving operates. Currently, these systems are restricted to structurally separated highways and are subject to speed limits.
If the weather is poor, such as heavy rain or snow, or if road construction alters the lanes, the system will disengage. Unless your vehicle explicitly features an activated, authority-approved Level 3 system, driving without your hands on the wheel is a traffic violation.

What Level of Autonomy Does XPENG Currently Offer?

XPENG currently offers advanced Level 2 driver assistance systems in Australia. While the hardware is highly advanced, drivers must keep their hands on the steering wheel while using these features.
XPENG electric vehicles are built on the SEPA architecture, integrating high-definition cameras, millimetre-wave radars, and ultrasonic sensors. This hardware suite supports features like Adaptive Cruise Control (ACC) and Lane Centring Control (LCC) for comfortable highway driving.
Although XPENG is actively testing more advanced self-driving features in other global markets, Australian regulations require extensive homologation. Further autonomous levels for the Australian market are envisaged via future over-the-air (OTA) updates once regulatory approvals are secured.
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Conclusion

While the legal framework for hands-off driving exists in some markets, it applies to a very specific set of certified Level 3 vehicles. For electric car owners in Australia, XPENG's current highway assistance features provide significant comfort but remain strictly hands-on at Level 2.
But we are striving to sharpen the smartness of our cars, aiming to provide users with more comfort and a novel driving experience.

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