Autonomous vehicles in Germany: Regulatory framework and key developments

2026 has become a significant year in the road to autonomous driving (AD) and Germany holds a key role internationally in legislating for the broader introduction of automated and autonomous vehicles (AVs). Against a backdrop of fragmented global regulation, it provides an important reference point for OEMs, operators, and investors seeking to understand where the market is heading.

Although the AV market is beginning to grow, neither SAE Level 3 nor SAE Level 4 systems have been deployed at significant scale to date -SAE Level 4 pilot projects for public transport are underway in a number of German cities, certain German OEMs plan to launch robotaxis (Level 4) in the near future, and international robotaxi providers are starting to enter the German market. The gap between legislative ambition and commercial reality is narrowing, but it still has some way to go.

This article provides an overview of the German regulatory framework for AVs, including key aspects of the approval process for higher levels of automation, and looks at the product liability and data regulatory landscape that market participants need to navigate.

Overview of the Regulatory Framework for AV approval

The regulatory framework for the approval of AVs applies, as in the case of conventional driving, at both European and national level. A vehicle must be approved either through type approval — typically EU type approval, although national type approval is also possible — or through an individual approval. In addition, the national rules governing the approval of vehicles with automated or autonomous driving functions must be met.

Key regulations at each level include:

• The European layer:At EU level, the legal basis for vehicle type approval remains provided by Regulation (EU) 2018/858 and Regulation (EU) 2019/2144 and incorporating UNECE regulations.For SAE Level 4, the ADS Regulation (Regulation (EU) 2022/1426) sets out specific requirements for EU type approval of automated driving systems (ADS) for fully automated vehicles. This regulation is a cornerstone of the EU's approach to enabling the commercial deployment of AVs.
• The German National Framework:Germany has enacted specific provisions amending its Road Traffic Act (Straßenverkehrsgesetz (StVG)) to govern automated and autonomous driving. As detailed further below, the operation of SAE Level 3 vehicles is generally permissible under StVG and SAE Level 4 vehicles may operate within an individually approved operational design domain. For SAE Level 4, amendments to the StVG were introduced in 2021 and supplemented by the Autonomous Vehicle Approval and Operation Regulation (Autonome-Fahrzeuge-Genehmigungs-und-Betriebs-Verordnung (AFGBV)).

Approval of SAE Level 3: Highly Automated Driving

SAE Level 3 functions can be approved for use on German public roads — typically through EU type approval — provided they also comply with other applicable national provisions under Sections 1a–1c of the StVG. The framework also provides an option for a testing permit to be granted for SAE Level 3 functions.

In Germany, EU type approval is granted by the Kraftfahrt-Bundesamt (KBA) – the German federal agency for road traffic - on application by the OEM to the KBA supported by technical service providers who carry out tests regarding safety, software and system conformity on its behalf.

The KBA additionally examines compliance with the German statutory requirements specific to SAE Level 3 functions. Section 1a of the StVG requires, in particular, that:

• the automated system must be capable of managing longitudinal and lateral vehicle control and compliance with traffic regulations;
• the driver must be able to override or deactivate the system at any time; and
• the system must recognise when manual control is required, be able to alert the driver to resume manual control with sufficient advance notice and indicate any use inconsistent with the system description.

These requirements reflect a measured approach to the human-machine interface at Level 3: the driver remains a fallback with the framework seeking to ensure that the transition back to the driver’s manual control is managed safely and with adequate warning.

Approval of SAE Level 4: Fully automated driving

At EU level, registration of SAE Level 4 vehicles is made on application by the OEM upon presentation of an EU small-series type approval². The ADS Regulation further provides that EU type approval may only be granted for vehicles operating within a defined geographical area or on a fixed route (hence Level 4, not Level 5 - full automation without any operational restriction - which is not yet capable of being licensed in the EU) and the corresponding operating permit must also be obtained in accordance with national provisions.

In addition, at national level, the KBA may grant a national type approval (nationale Betriebserlaubnis) for small-batch series with SAE Level 4 functions³, pursuant to Sections 1d–1l StVG and the AFGBV.

Both EU small-series type approval and national type approval are restricted to an approved designated operating area. In order to obtain approval for a designated operating area, the OEM must submit a safety case covering the geo-fenced operating area together with incident management and reporting obligations. Whilst permanent supervision is not required, technical supervision — a human operator working from a control centre, the so-called "human-in-the-loop" — that is able to deactivate the vehicle or approve alternative driving manoeuvres must always be available.

This human-in-the-loop requirement is significant. Even at Level 4, the German regulators are not yet prepared to remove the human entirely from the operational picture. This is an important consideration for operators when designing their service architecture.

Teleoperated driving

On 1 December 2025, Germany enacted the Road Traffic Remote Control Ordinance (Straßenverkehrs-Fernsteuerungsverordnung (StVFernLV)), which creates the first uniform legal framework for teleoperated driving on public roads throughout Germany.

It provides that operators must obtain official permits, including technical evidence, safety concepts and defined operating areas, replacing the previously required individual exemptions. Vehicles must meet defined requirements for safety and emergency systems, including a minimum risk function, real-time monitoring and control station technology.

The StVFernLV is a welcome development for operators who had previously been required to obtain exemptions on a case-by-case basis. The creation of a standardised permitting regime reduces legal uncertainty and lowers a significant barrier to the commercialisation of teleoperated services in Germany.

Product liability

As commercial AV deployment moves ever closer, the question of who bears responsibility if things go wrong becomes pertinent. Here, the German and EU liability frameworks are evolving in response, with key elements including:

• Germany’s Product Liability Act (Produkthaftungsgesetz) and general German tort law which impose liability on manufacturers for design, manufacturing and instruction defects;
• The revised EU Product Liability Directive (PLD) - as control increasingly shifts to software, manufacturers face heightened product liability exposure and the PLD expressly covers software, extending the product liability regime to software defects in AD systems. Member States must transpose the PLD into national law by 9 December 2026. The express inclusion of software within the product liability regime is a material change. For AV manufacturers, the safety case they build for regulatory approval purposes will increasingly overlap with — and feed into — their legal exposure under product liability law.

The EU AI Act and Data Protection

The EU AI Act (Regulation (EU) 2024/1689), adopted on 21 May 2024, classifies AD systems as high-risk AI systems, thereby imposing stringent documentation and transparency obligations on manufacturers. These obligations are likely to ease access to evidence for injured parties, creating significant procedural advantages.

Meanwhile, the General Data Protection Regulation (GDPR) is also relevant as the owner of a vehicle with an AD function is subject to extensive data storage obligations, covering accidents, near-accidents, unplanned manoeuvres and evasive manoeuvres.

Taken together, the EU AI Act and GDPR create a data governance environment that is potentially burdensome. However, it also provides a degree of certainty with regards to record keeping and how they may be used in the event of a dispute. For those deploying AVs commercially, building robust data management systems from the outset is not merely a compliance exercise — it is a form of legal risk management.

Outlook: Where does Germany go from here?

The German government has signalled its ambition to make the 2020s a decade of digital mobility. Germany holds a leading role internationally, having enacted one of the first operational legal regimes that allow for the commercial deployment of Level 4 vehicles on public roads. However, there is a gap between ambition and reality: the KBA has approved 250 test vehicles for the testing of Level 3 and 4 functions, yet no company has transitioned a Level 4 pilot project into regular operation.

To accelerate market uptake, Germany is pushing for harmonisation of regulation across the EU and globally. In February 2026, a draft amendment of the StVG was introduced to consolidate existing terminology into a single unified concept of "automated driving" in line with international standards.

At EU level, the European Commission is moving to reform the type approval framework to allow for unlimited series production of AVs and EU-wide deployment infrastructure. For 2026 and beyond, regulatory sandboxes and dedicated AD corridors are to be introduced.

Beyond regulation, the EU is driving collaboration to advance the development of AD more broadly. In March 2025, the Commission announced in its Automotive Action Plan the creation of the European Connected and Autonomous Vehicle Alliance (ECAVA), which brings together various stakeholders from the European automotive industry (OEMs, suppliers, technology providers, and startups). ECAVA aims to coordinate technological development and investment in software-defined, AI-enabled, connected and AV technologies, thereby pooling resources and strengthening competitiveness in the global market. The first ECAVA Forum took place in June 2026 where EVP Virkkunen announced the Autonomous Drive Ambition Cities (ADACities) initiative — a flagship programme under the Apply AI Strategy to support the deployment of AD in selected cities across the EU. Cities participating in ADACities will target fleets of 100 or more AVs by 2030.

Overall, Germany's regulatory framework for AVs is sophisticated and forward-looking. The regulatory direction of travel — towards harmonisation, greater scale and dedicated infrastructure — is clear. What remains to be seen is whether the pace of market development, consumer sentiment and commercial realities, can match the legislative ambition that has so far defined Germany's approach.

Endnotes

1. Sections 1a et seq. StVG

2. Under Article 41 of Regulation (EU) 2018/858, limited to 1,500 units per year for vehicles of classes M1 and N1.

3. Under Article 42 of Regulation (EU) 2018/858, limited to 250 units per year but available for classes M1-3 and N1-3.