KUALA LUMPUR (Dec 10): Daimler's Mercedes-Benz has won regulatory approval to deploy a hands-free driving system in Germany ahead of Tesla, gaining an edge in the race to offer higher levels of automation in one of the world's most competitive car markets.

Detroit-based weekly newspaper Automotive News reported on Thursday (Dec 9) that the automaker had gotten the go-ahead to sell its Drive Pilot package for use on stretches of the country's Autobahn network at a speed of up to 60 kph.

It said the system was approved for Level 3 autonomous driving, a notch higher than Tesla's Level 2 autopilot system, and will allow drivers to take their hands off the wheel in slow-moving traffic.

The report cited Mercedes as saying Drive Pilot would enable the driver to turn away from the traffic and focus on certain secondary activities.

"For example, to communicate with colleagues via the in-car office, to write emails, to surf the internet or to relax and watch a film," the carmaker said.

Tesla, Alphabet's Waymo and others have been chasing self-driving technology for years.

A fully autonomous vehicle would be highly attractive to premium customers, allowing drivers to work or use entertainment systems during journeys.

Automotive News said Mercedes had obtained permission for the system only in Germany, but added it was aiming for regulatory approval in other jurisdictions as well.

As soon as legislation in China and the United States is in place, Mercedes-Benz will offer the system in those markets, said Markus Schaefer, Daimler chief technology officer.

Drive Pilot will be an option for the S-Class and EQS models from around the middle of next year.