A fleet of more than 100 driverless cars will be tested on British roads and motorways by 2020.
Jaguar Land Rover has embarked on a four-year project to develop and test a wide range of different vehicles.
The initial tests will involve technologies that will allow cars to talk to each other and roadside signs, overhead gantries and traffic lights.
It is hoped this will assist the driver and make lane changing and crossing junctions easier and safer.
Tony Harper, head of research at JLR, said: “Our connected and automated technology could help improve traffic flow, cut congestion and reduce the potential for accidents.
The system will then apply a small amount of steering assistance to the wheel
“We will also improve the driving experience, with drivers able to choose how much support and assistance they need.
“In traffic, for example, the driver could choose autonomy assist during tedious or stressful parts of the journey.
“But even when an enthusiastic driver is fully focused on enjoying the thrill of the open road, the new technology we are creating will still be working in the background to help keep them safe.
“Because the intelligent car will always be alert and is never distracted, it could guide you through road works and prevent accidents.
“If you are a keen driver, imagine being able to receive a warning that there’s a hazard out of sight or around a blind bend.
“Whether it’s a badly parked car or an ambulance heading your way, you could slow down, pass the hazard without fuss and continue on your journey.”
Technologies being used include Roadwork Assist which uses a camera to generate a 3D view of the road ahead, reports the Coventry Telegraph.
The system can sense when the vehicle is approaching the start of the roadworks, identify an ideal path through complicated construction sites and contraflows, and inform the driver the road is narrowing ahead.
The system will then apply a small amount of steering assistance to the wheel to help the driver remain in the centre of a lane.
The initial tests will involve technologies that will allow cars to talk to each other
Jaguar Land Rover is also developing an assistance system called Safe Pullaway aimed at preventing accidents that happen when cars get too close to the vehicle in front in traffic jams or when entering junctions - a common cause of accidents.
Other technologies include Over the Horizon and Hazard Ahead.
Over the Horizon uses radio signals to transmit relevant data from vehicle to vehicle.
By allowing vehicles to communicate independently, drivers and autonomous cars could be warned of hazards and obstacles over the horizon or around blind bends.
If a vehicle has slowed or stopped, and poses a risk to other motorists, it would send a ‘Hazard Ahead’ warning to nearby vehicles.
Emergency Vehicle Warning will allow connected ambulances, police cars or fire engines to communicate with other vehicles on the road - a device in the emergency vehicle would broadcast that it is approaching before the driver could see or hear flashing lights and sirens.
JLR are the latest company to embrace driverless car technology.
RDM Group recently unveiled futuristic pods ideal for city transport authorities, airports, shopping centres and theme parks, with a range of 60 miles.
In February it was revealed millions of pounds of funding has been secured to enable the UK to launch what will be the first fully connected road test environment for vehicles.
Former business secretary, Sajid Javid, visited HORIBA MIRA in Nuneaton to launch the multi-million-pound programme.